: Adobe sales, earnings top estimates but stock falls on tepid guidance


Adobe Inc. shares fell 3% in extended trading Tuesday after the software company reported fiscal first-quarter revenue that surpassed Wall Street analysts’ lofty forecasts but offered tepid guidance.

The company

reported net income of $1.27 billion, or $2.66 a share, compared with net income of $1.26 billion, or $2.61 a share, in the year-ago quarter. Adjusted earnings were $3.37 a share.

Revenue surged 9% to a record $4.26 billion from $3.91 billion a year ago. Digital Media accounted for $3.1 billion.

“Adobe’s Q1 results reflect the company’s strong execution and resilience through unprecedented circumstances,” Adobe Chief Financial Officer Dan Durn said in a statement announcing the results. “Our momentum, product innovation and immense market opportunity position us for success in 2022 and beyond.”

Analysts surveyed by FactSet had expected net earnings of $3.34 a share on revenue of $4.24 billion.

The company’s second-quarter guidance of $4.34 billion in revenue and earnings of $3.30 a share fell short of FactSet analyst estimates of $4.4 billion and $3.35 a share, respectively.

Adobe’s stock is down 18% this year, while the broader S&P 500 index

has declined 5%.

Adobe has gleaned about three-fourths of its revenue from digital media — including the analysis of real-time data, pegged as a $33 billion market.

“The next step in the digital transformation is, how do they make it personal? Previously, systems did not work in real time,” Anil Chakravarthy, president of Adobe’s Digital Experience, recently told MarketWatch.

Adobe’s real-time customer data platform is used by Nike Inc.
Coca-Cola Co.
General Motors Co.
Prudential Financial Inc.
ServiceNow Inc.

and Workday Inc.

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