Adobe shares fell as much as 5% in extended trading on Thursday after the design software maker gave full-year guidance that fell short of analysts’ expectations.
Here’s how the company did:
- Earnings: $3.35 per share, adjusted, vs. $3.31 per share as expected by analysts, according to Refinitiv.
- Revenue: $4.39 billion, vs. $4.34 billion as expected by analysts, according to Refinitiv.
For the full fiscal year, Adobe reduced its guidance. It called for $13.50 in adjusted earnings per share on $17.65 billion in revenue. Analysts polled by Refinitiv had expected $13.66 in adjusted EPS and revenue of $17.85 billion. In December the guidance for the 2022 fiscal year was $13.70 in adjusted earnings per share and $17.90 billion in revenue.
The company pointed to the war in Ukraine, a $175 million foreign-exchange headwind, and summer seasonality. Microsoft and Salesforce also cited currency impact when they issued worse-than-expected projections in recent weeks.
During the quarter ended June 3, the company’s revenue grew 14% year over year, according to a statement. Adobe’s net income in the fiscal second quarter, at $1.18 billion, was up about 6%.
Adobe’s Digital Media segment, which includes Creative Cloud and Document Cloud products, reported $3.20 billion in revenue, up 15% and more than the StreetAccount consensus estimate of $3.16 billion.
The Digital Experience business, which includes Adobe’s Experience Cloud that companies use for marketing and commerce, contributed $1.10 billion, up 17% and above the $1.08 billion StreetAccount consensus.
During the quarter Adobe announced price hikes for certain Creative Cloud subscriptions, citing the launch of new applications, and said a version of its Experience Cloud for health-care customers was available.
Adobe ended the quarter with $4.88 billion in deferred revenue, down from $5.02 billion three months earlier and below the StreetAccount consensus of $5.00 billion.
Notwithstanding the after-hours move, Adobe shares are down about 36% since the start of the year, while the S&P 500 index is down 23% over the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back here for updates.
WATCH: Adobe CEO says e-commerce categories including electronics are seeing price declines
