Adobe Stocks rose 5% in extended trading on Wednesday after the software maker released first-quarter results that beat Wall Street estimates and raised full-year forecasts.
Here’s how the company did it:
- Earnings: Analysts are expecting $3.68 per share, compared to an adjusted $3.80 per share, according to Refinitiv.
- Earnings: Analysts expected $4.62 billion, according to Refinitiv.
Earnings for the quarter ended March 3 were up 9% year-over-year, according to some data. statementNet income declined slightly to $1.25 billion.
The company’s Digital Media segment, which includes Creative Cloud design software bundles, grew 9% year-over-year to $3.4 billion in revenue, beating the $3.36 billion consensus among analysts surveyed by StreetAccount.
Adobe’s Digital Experience segment, which features Marketo marketing software, generated $1.18 billion in revenue, just above the StreetAccount consensus of $1.17.
Adobe expects second-quarter adjusted earnings per share of $3.75 to $3.80 and revenue of $4.75 billion to $4.78 billion. Analysts surveyed by Refinitiv had expected adjusted earnings of $3.76 per share and earnings of $4.76 billion.
Adobe has raised its earnings guidance for fiscal 2023 and now sees adjusted earnings per share of $15.30 to $15.60 and net new annual recurring revenues from digital media of $1.7 billion. In December, Adobe said he expects adjusted earnings per share for the full year of $15.15 to $15.45 and net new digital media ARR of $1.65 billion for him. Analysts surveyed by Refinitiv had expected adjusted earnings per share to be $15.31.
During the quarter, Adobe said it was involved with US, UK and EU regulators in its pending $20 billion acquisition of design software startup Figma.
Excluding after-hours activity, Adobe’s stock is down 1% so far this year, while the S&P 500 index is up 1%.
Management will discuss results with analysts in a conference call beginning at 5:00 pm ET.
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