Adobe stock falls after earnings and revenue beat consensus estimates
Adobe Inc. shares fell than 1% in the extended session Thursday after the software company beat Wall Street estimates for earnings and revenue. The company reported fiscal first-quarter net income of $674.2 million, or $1.36 a share, compared with $492.1 million, or $1.17 a share, in the year-ago period. Adjusted for stock-based compensation, investment losses and tax adjustments, among other things, earnings were $1.71 a share, compared with $1.55 a share in the year-ago period. Revenue rose to $2.6 billion from $2.08 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of $1.62 a share on revenue of $2.55 billion. For the fiscal second quarter, analysts model adjusted earnings of $1.88 a share and sales of $2.72 billion. Adobe said it expects fiscal second-quarter adjusted earnings of roughly $1.77 a share on sales of about $2.7 billion. Adobe stock has gained 23% in the past year, with the S&P 500 index rising 2.2%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.