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Advertising technology and marketing software company Adobe (ADBE) late Wednesday beat Wall Street targets for its fourth earnings quarter but were not happy with its outlook. ADBE shares fell in extended trading.
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The San Jose, Calif.-based company found an adjusted $4.27 per share on sales of $5.05 billion in the quarter ended Dec. 1. Analysts surveyed by FactSet had expected Adobe’s earnings to be $4.13 on sales of $5.01 billion. On a year-over-year basis, Adobe’s revenue rose 19% while sales grew 12%.
For the current quarter, Adobe forecast adjusted earnings of $4.38 per share on sales of $5.13 billion. That forms the center of his leadership. Wall Street had projected earnings of $4.26 per share on sales of $5.16 billion in the first fiscal quarter. His strategy will translate into year-over-year growth of 15% in revenue and 10% in sales.
For its full fiscal 2024, Adobe projects adjusted earnings of $17.80 per share, up 11%, on sales of $21.4 billion, up 10%. Analysts had expected earnings of $18 a share on sales of $21.73 billion.
ADBE’s stock sank after the report
After hours trading on the stock market today, ADBE stock fell 6.2% to 585.35. During the regular session on Wednesday, ADBE fell 1.5% to close at 624.26.
Adobe CEO Shantanu Narayen said the company had “strong momentum” in fiscal year 2023 in its Creative Cloud, Document Cloud and Experience Cloud services.
“Adobe’s strategy, sector leadership, innovation, exceptional talent and global sales position us well for 2024 and beyond,” he said in a statement. news.
One of the bets on ADBE’s stock is the company’s acquisition of Figma. Government regulatory review threatens to block $20 billion in costs from closing.
ADBE stock is above IBD Cabbage size 20 and Tech Leaders product list.
Follow Patrick Seitz on X, first Twitter, p @IBD_PSeitz for more articles on consumer technology, software and semiconductor distribution.
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