Adobe Inc. shares fell 3%. in extended trading on Tuesday after the software company reported earnings in the fiscal first quarter that exceeded Wall Street analysts ’high forecasts but offered warm guidance.
The company ADBE,
reported net income of $ 1.27 billion, or $ 2.66 a share, compared to net income of $ 1.26 billion, or $ 2.61 a share, in the previous quarter. Adjusted earnings are $ 3.37 per share.
Revenue rose 9% to a record $ 4.26 billion from $ 3.91 billion last year. Digital Media is worth $ 3.1 billion.
“Adobe’s Q1 results reflect the company’s strong execution and stability through unprecedented events,” Adobe Chief Financial Officer Dan Durn said in a statement announcing the results. “Our momentum, product innovation and tremendous market opportunities set us up for success in 2022 and beyond.”
Analysts analyzed by FactSet expect net income of $ 3.34 per share on revenue of $ 4.24 billion.
The company’s second quarter guidance of $ 4.34 billion in revenue and earnings of $ 3.30 per share fell short of FactSet analyst estimates of $ 4.4 billion and $ 3.35 per share, respectively.
Adobe stock is down 18% this year, while the broader S&P 500 index SPX,
dropped by 5%.
Adobe gets about three-quarters of its revenue from digital media-including real-time data analysis, which is pegged as a $ 33 billion market.
“The next step in digital innovation is, how do they make it personal? In the past, systems didn’t 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. NKE,
Coca-Cola Co. KO,
General Motors Co. GM,
Prudential Financial Inc. PRU,
ServiceNow Inc. NOW,
at Workday Inc. WDAY,
.