Digital media and marketing software firm Adobe (ADBE) late Thursday beat Wall Street’s targets for its fiscal third quarter. But its outlook for the current period called for earnings modestly higher than views on in-line sales. ADBE stock fell in extended trading.
The San Jose, Calif.-based company earned an adjusted $4.09 a share on sales of $4.89 billion in the quarter ended Sept. 1. Analysts polled by FactSet had expected Adobe earnings of $3.98 a share on sales of $4.87 billion. On a year-over-year basis, Adobe earnings rose 20% while sales advanced 10%.
For the current quarter, Adobe forecast adjusted earnings of $4.13 a share on sales of $5 billion. That’s based on the midpoint of its guidance. Wall Street had been modeling earnings of $4.06 a share on sales of $5 billion for the fiscal fourth quarter. In the year-earlier period, Adobe earned an adjusted $3.60 a share on sales of $4.53 billion.
“Adobe delivered world-class margins and earnings in Q3, while making significant investments in our technology platforms,” Chief Financial Officer Dan Durn said in a news release.
He added, “Our innovation engine, global reach and strong operational rigor position us to capture the massive opportunities ahead.”
ADBE Stock Falls After Report
In after-hours trading on the stock market today, ADBE stock slid 0.7% to 548.50. During the regular session Thursday, ADBE stock dipped 0.3% to close at 552.16.
Earnings report details to follow.
Adobe ranks first out of six stocks in IBD’s Computer Software-Desktop industry group, according to IBD Stock Checkup. ADBE stock has best-possible IBD Composite Rating of 99.
Further, ADBE stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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