Adobe Inc.’s plunge into artificial intelligence has mostly paid big dividends this year, but a soft sales outlook pushed the company’s stock down Wednesday. Compounding matters, Adobe aid it was being probed by the Federal Trade Commission about its subscription practices.
Shares of the desktop-publishing pioneer
ADBE,
-1.48%
sunk about 5% in extended trading Wednesday after the company reported robust quarterly results that topped analyst estimates for revenue and earnings but issued quarterly and annual sales projections that disappointed Wall Street. Adobe’s stock has blown up nearly 80% since its May introduction of AI tools during its annual developers conference. On Wednesday, Adobe shares declined 1.5% to $624.26 during the regular trading session. Adobe’s all-time closing high was nearly $700, reached in November 2021. Adobe reported fiscal fourth-quarter net earnings of $1.49 billion, or $3.23 a share, compared with net earnings of $1.18 billion, or $2.53 a share, in the same quarter a year earlier. Adjusted earnings were $4.27 a share. Revenue climbed to a record $5.05 billion from $4.53 billion in the year-ago quarter. “Adobe drove record revenue of $19.41 billion in [fiscal 2023] and 17 percent year-over-year EPS growth, with strong momentum across Creative Cloud, Document Cloud and Experience Cloud,” Adobe Chief Executive Shantanu Narayen said in a statement announcing the results. Analysts surveyed by FactSet had expected, on average, ne …
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Shares of the desktop-publishing pioneer
ADBE,
-1.48%
sunk about 5% in extended trading Wednesday after the company reported robust quarterly results that topped analyst estimates for revenue and earnings but issued quarterly and annual sales projections that disappointed Wall Street. Adobe’s stock has blown up nearly 80% since its May introduction of AI tools during its annual developers conference. On Wednesday, Adobe shares declined 1.5% to $624.26 during the regular trading session. Adobe’s all-time closing high was nearly $700, reached in November 2021. Adobe reported fiscal fourth-quarter net earnings of $1.49 billion, or $3.23 a share, compared with net earnings of $1.18 billion, or $2.53 a share, in the same quarter a year earlier. Adjusted earnings were $4.27 a share. Revenue climbed to a record $5.05 billion from $4.53 billion in the year-ago quarter. “Adobe drove record revenue of $19.41 billion in [fiscal 2023] and 17 percent year-over-year EPS growth, with strong momentum across Creative Cloud, Document Cloud and Experience Cloud,” Adobe Chief Executive Shantanu Narayen said in a statement announcing the results. Analysts surveyed by FactSet had expected, on average, ne …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]