Adobe late Wednesday handily beat Wall Street's targets for its fiscal fourth quarter. But its sales and earnings guidance for 2025 was below views. Adobe stock sank in extended trading.
The digital media and marketing software firm earned an adjusted $4.81 a share on sales of $5.61 billion in the quarter ended Nov. 29. Analysts polled by FactSet had expected Q4 earnings of $4.67 a share on sales of $5.54 billion. On a year-over-year basis, Adobe earnings rose 13% while sales climbed 11%.
For its fiscal first quarter, Adobe expects to earn an adjusted $4.98 a share on sales of $5.66 billion. That's based on the midpoint of its outlook. Analysts were modeling earnings of $4.95 a share on sales of $5.72 billion.
For the full fiscal 2025, Adobe guided to adjusted earnings of $20.35 a share on sales of $23.43 billion. Analysts had been expecting earnings of $20.52 a share on sales of $23.78 billion. In its just-finished fiscal 2024, Adobe earned an adjusted $18.42 a share, up 15%, on sales of $21.51 billion, up 11%.
Adobe Stock Falls After Q4 Report
In after-hours trading on the stock market today, Adobe stock slid more than 7% to 506.50. During the regular session Wednesday, Adobe stock rose 0.5% to close at 549.93.
Adobe's Creative Cloud, Document Cloud and Experience Cloud products are playing a "mission-critical role" in the AI economy, Chief Executive Shantanu Narayen said in a news release.
Chief Financial Officer Dan Durn added, "Adobe's strategy, AI innovation and massive cross-cloud opportunity position us well for 2025 and beyond."
Adobe stock has formed a cup base with a buy point of 587.75, according to IBD MarketSurge charts.
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