Adobe Inc (Nasdaq: ADBE) is trading down in extended hours on Thursday even though it reported upbeat financial results for its first quarter.
Adobe stock down on muted guidance
The stock is taking a hit because $ADBE failed to impress with its future guidance. The software giant now forecasts revenue to fall between $5.25 billion and $5.30 billion on up to $4.40 of adjusted per-share earnings in its current quarter.Analysts, in comparison, were at $5.31 billion and $4.38 a share, respectively. Still, Dan Durn – the chief financial officer of Adobe Inc said in a press release today:
As a result of our strong trajectory of growth and profitability, we are announcing a new $25 billion share repurchase program, which demonstrates [our] commitment to returning capital to our shareholders.
The multinational ended its Q1 with $17.58 billion of remaining performance obligations – up close to 16% versus the same quarter last year. Adobe stock is currently up nearly 60% versus a year ago.
Notable figures in Adobe Q1 earnings release
Adobe noted 10% annualized growth in its digital experience segment while its digital media revenue popped 12% in the first quarter. According to CEO Shantanu Narayen:
We’ve done an incredible job harnessing the power of generative AI to deliver groundbreaking innovation across our product portfolio.
What if you could easily translate dialogue into different languages? Check out this sneak preview from Adobe Research. 👀 Dubbing & Lip Sync explores how to quickly translate videos. As with all Adobe AI, when we do release this we will do so thoughtfully and responsibly. pic.twitter.com/D3IITDxAuY
— Adobe (@Adobe) March 14, 2024
More By This Author:Dick’s Sporting Goods Q4 Earnings: ‘Our Growth Opportunities Are Significant’ Fisker Stock Just Crashed 40% On Bankruptcy News Lennar Corp Q1 Earnings: ‘Housing Market Fundamentals Remained Strong’
