Adobe posts solid revenues. Why it was not enough to increase the stock.

Text size

Adobe

Fiscal third quarter earnings and sales exceeded expectations, but the results were not enough to drive shares higher amid the extended trading.

For the quarter ended September 3,

Adobe

(ticker: ADBE) reported revenue of $ 3.94 billion, up 22% year-over-year. It was a quarterly sales record for the creative software company, beating the Wall Street consensus estimate of $ 3.89 billion, according to FactSet. Non-GAAP earnings of $ 3.11 per share also exceeded consensus estimates at $ 3.01 per share.

But Adobe shares have risen more than 40% in the past six months after a string of better-than-expected quarters. Better than consensus results may have already been factored into the stock. The stock was down 3.9% to $ 620.80 in after-hours trading after the report.

---

Newsletter Sign-Up

Review and preview

Every weekday evening, we highlight the important market news of the day and explain what is likely to matter tomorrow.

---

“Adobe had another exceptional quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform storytelling, learning and doing business in a digitally driven world,” CEO Shantanu Narayen said in the statement results.

Sales of the Digital Experience segment jumped 26% to $ 985 million. Revenue in the digital media segment grew 23% year-over-year to $ 2.87 billion. This includes Creative segment revenue of $ 2.37 billion, up 21% from the prior year quarter, and Document Cloud revenue of $ 493 million, up 31% from a year earlier. year over year.

For the fiscal fourth quarter, the company’s targets include revenue of $ 4.07 billion and non-GAAP earnings of $ 3.18 per share. Both numbers were ahead of Wall Street’s consensus estimate before the release, according to FactSet.

Write to Connor Smith at [email protected]