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published in Blogs
Dec 16, 2022
Adobe (ADBE, $328.71) shares jump, following Q4 earnings beat

Adobe (ADBE, $328.71) shares jump, following Q4 earnings beat

Adobe shares climbed +6% in after-hours trading on Thursday, after the software giant announced its fiscal fourth-quarter earnings that surpassed analysts’ expectations. The company also provided a better-than-expected outlook.

Adjusted earnings for the quarter ending Dec. 2 came in at $3.60 per share, beating the $3.50 per share expected by analysts.

Revenue grew +10% from the year-ago quarter to $4.53 billion, vs. $4.53 billion expected by the Street. 

Adobe’s Digital Media segment, which includes Creative Cloud design software subscriptions, generated $3.30 billion in revenue, falling shy of the StreetAccount consensus of $3.31 billion (as reported in CNBC). The Digital Experience business, which includes Adobe’s marketing software, garnered $1.15 billion in revenue, topping the $1.14 billion StreetAccount consensus (as reported in CNBC).

For the fiscal first quarter, Adobe is expecting adjusted earnings of $3.65 to $3.70 per share, compared to analysts’ forecast of $3.64 per share. The company has projected revenue in the range of on $4.60 billion to $4.64 billion, vs. analysts’ expectations of $4.64 billion. (The forecasts don’t include impact from the Figma deal. Adobe said, during the quarter, that it would acquire design software startup Figma for about $20 billion).

Looking further ahead, Adobe projects full-year earnings of $15.15 to $15.45 a share on revenue of $19.1 billion to $19.3 billion, while analysts polled by FactSet expected $15.33 a share on revenue of $19.35 billion. The company expects new Digital Media ARR of about $1.65 billion versus the Street expectations of $1.75 billion.

Related Tickers: ADBE