Adobe stock tumbled Thursday after the company’s fiscal 2022 outlook disappointed investors.
Adobe (ticker: ADBE
) projected revenue of around $17.9 billion and adjusted profit of about $13.70 a share for fiscal 2022. Wall Street expects revenue of $18.2 billion and earnings of $14.26.
The company said it expects next year’s first-quarter earnings per share to clock in at around $3.35 on revenue of $4.23 billion. Analysts surveyed by FactSet are expecting profits of $3.39 a share on sales of $4.33 billion.
Shares of Adobe plunged 8.3% to $579.50 in premarket trading Thursday following the company’s disappointing forecast.
Adobe also reported fourth-quarter earnings, posted an adjusted profit of $3.20 a share, meeting consensus estimates. Revenue was $4.11 billion, topping expectations for $4.08 billion.
The company achieved record annual revenue of $15.79 billion for 2021, representing 23% year-over-year growth. Yearly earnings per share came in at $12.48.
Adobe will be hosting an investors meeting at 8 a.m. Pacific time, where it expects to announce its addressable market could expand to about $205 billion by 2024.
The stock has risen 26% this year, generally in line with the S&P 500, which has increased 25.4%. The Dow Jones Industrial Average has grown 17.4%.
Write to Sabrina Escobar at [email protected]
