Earnings Outlook: Adobe stock rises as outlook confirmed ahead of earnings

by | Oct 18, 2022 | Stock Market

Adobe Inc. shares rose in the extended session Tuesday after the software company did what many tech companies have not this earnings season: Stick to its forecast. Adobe
ADBE,
-0.18%
shares advanced more than 3% in after-hours trading, following a 0.2% decline to close the regular session at $292.98.

Several tech companies, from Nvidia Corp.
NVDA,
+0.66%
to Applied Materials Inc.
AMAT,
+1.10%,
have been reporting sales shortfalls of about $1 billion ahead of earnings reports this season. Adobe reports much later, however, estimated around Dec. 15. The company said it estimates “preliminary” fiscal 2023 targets of adjusted earnings of $15.15 to $15.45 a share on revenue of $19.1 billion to $19.3 billion. Analysts surveyed by FactSet had forecast earnings of $15.52 a share on revenue of $19.85 billion. Adobe also said it is reaffirming its fourth-quarter outlook of $3.50 a share on revenue of $4.52 billion. Analysts expect $3.50 a share on revenue of $4.53 billion. Adobe shares have dropped more than 20% since mid-September, compared with a 4.6% decline by the S&P 500 index
SPX,
+1.14%
over that span, after Adobe announced its $20 billion deal to acquire Figma, a design platform for collaborators, a deal that’s received little love from Wall Street.

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