Adobe Inc. ADBE shares are trading lower in Wednesday's after-hours session on the heels of the company's fourth-quarter earnings. Here's what you need to know.
What To Know: Adobe reported quarterly earnings of $4.27 per share which exceeded the Street's estimate of $4.14. The figure marks an 18.61% increase over earnings of $3.60 per share from the same period last year.
Revenue clocked in at $5.05 billion, surpassing the analyst consensus estimate of $5.03 billion, an 11.60% increase over sales of $4.53 billion from the same period last year.
Some of the highlights from Adobe's business segments included Creative revenue growing to $3.00 billion, a year-over-year increase of 12%, or 14% in constant currency.
Additionally, cash flows from operations were $1.60 billion for the fourth quarter.
Adobe issued its outlook for full-year 2024, with adjusted earnings per share anticipated to be between $17.60 and $18, versus the $18 estimate, and Total Revenue expected to be between $21.30 billion and $21.50 billion, versus the $21.73 billion estimate.
The company also provided first-quarter guidance, seeing adjusted earnings per share between $4.35 and $4.40, versus the $4.26 estimate, and Total Revenue between $5.1 billion and $5.15 billion, versus the $5.19 billion estimate.
The company also cautioned about the monetary costs or penalties of the situation with the FTC going forward.
"Adobe drove record revenue of $19.41 billion in FY23 and 17 percent year-over-year EPS growth, with strong momentum across Creative Cloud, Document Cloud and Experience Cloud," said Shantanu Narayen, chair and CEO, Adobe.
"Adobe's strategy, category leadership, ground-breaking innovation, exceptional talent and global customer base position us well for 2024 and beyond."
Related Link: OpenAI, Global Publisher Axel Springer Collaborate To Train GenAI For Journalism Content Creation
ADBE Price Action: Shares of ADBE were down 5.15% at $592.10 in the after-hours session Wednesday at the time of publication, according to Benzinga Pro.
Photo: Elchinator from Pixabay
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