Adobe Inc ADBE shares are trading lower Thursday after the company reported fiscal third-quarter financial results and announced a deal to buy Figma for approximately $20 billion.
Third-quarter revenue increased 13% year-over-year to $4.43 billion, which was in line with average analyst estimates, according to Benzinga Pro. The company reported quarterly earnings of $3.40 per share, which beat average analyst estimates of $3.33 per share.
Adobe expects fourth-quarter revenue to be approximately $4.52 billion versus the estimate of $4.58 billion. The company expects fourth-quarter earnings to be approximately $3.50 per share versus the estimate of $3.45 per share.
Adobe also entered into a definitive agreement to acquire web-first collaborative design platform Figma for approximately $20 billion in cash and stock.
"The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity," said Shantanu Narayen, chairman and CEO of Adobe.
The transaction with Figma is expected to close in 2023. Until the transaction closes, each company will continue to operate independently.
- Citigroup analyst Tyler Radke maintained Adobe with a Neutral rating and raised the price target from $380 to $388.
ADBE Price Action: Adobe has a 52-week high of $575 and a 52-week low of $338.
The stock was down 9.56% at $336.05 at time of publication.
Photo: Joshua Woroniecki from Pixabay.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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