Adobe Stock Is Falling Thursday: What's Going On?

Zinger Key Points
  • Adobe beat estimates on both the top and bottom line in the fourth quarter.
  • The company issued a soft forecast for the first quarter of fiscal 2024.

Adobe Inc ADBE shares are trading lower Thursday after the company reported quarterly results and issued soft guidance. Here's a rundown of the report

  • Q4 Revenue: $5.05 billion beat estimates of $5.03 billion
  • Q4 EPS: $4.27 beat estimates of $4.14

Total revenues were up 12% on a year-over-year basis. Remaining performance obligations were $17.22 billion at the end of the quarter. Cash flows from operations totaled $1.6 billion in the fourth quarter. 

"Adobe drove record revenue of $19.41 billion in FY23 and 17 percent year-over-year EPS growth, with strong momentum across Creative Cloud, Document Cloud and Experience Cloud," said Shantanu Narayen, chair and CEO of Adobe.

"Adobe's strategy, category leadership, ground-breaking innovation, exceptional talent and global customer base position us well for 2024 and beyond."

Outlook: Adobe sees fiscal first-quarter revenue of $5.1 billion to $5.15 billion versus estimates of $5.19 billion. The company anticipates first-quarter adjusted earnings of $4.35 to $4.40 per share versus estimates of $4.26 per share. 

Adobe expects full-year 2024 revenue to be between $21.3 billion and $21.5 billion versus estimates of $21.73 billion. The company expects full-year adjusted earnings to be between $17.60 and $18 per share versus estimates of $18 per share. 

Adobe shares may also be facing selling pressure after the company announced in a new regulatory filing that it has been cooperating with the FTC since June 2022 in response to a civil investigative demand seeking information regarding disclosure and subscription cancellation practices relative to the Restore Online Shoppers’ Confidence Act. 

See Also: Robinhood, Verizon And 2 Other Stocks Insiders Are Selling

ADBE Price Action: Adobe shares were down 3.62% at $601.65 at the time of publication, according to Benzinga Pro.

Photo: Alexander Pahn from Pixabay.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsMoverswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!