Adobe (ADBE) late Wednesday beat analyst estimates for its fiscal first quarter but offered mixed guidance for the current period. Adobe stock fell in extended trading.
The digital media and marketing software maker earned an adjusted $5.08 a share on sales of $5.71 billion in the quarter ended Feb. 28. Analysts polled by FactSet had expected the San Jose, Calif.-based company to earn an adjusted $4.97 a share on sales of $5.66 billion. In the year-earlier period, Adobe earned an adjusted $4.48 a share on sales of $5.18 billion.
↑ X NOW PLAYING Here’s Why Difficult Times In The Market Make Things Easier For Traders For the current quarter, its fiscal Q2, Adobe expects to earn an adjusted $4.98 a share on sales of $5.8 billion. That’s based on the midpoint of its outlook. Analysts were modeling earnings of $5 a share on sales of $5.8 billion.
Adobe also reaffirmed its prior guidance for the full fiscal year.
In after-hours trading on the stock market today, Adobe stock sank about 1% to 434.15. During the regular session Wednesday, Adobe stock rose 1.1% to close at 438.60.
Earnings report details to follow.
Estée Lauder Using Adobe Firefly
Shareholders have been waiting for Adobe’s investments in generative artificial intelligence to reignite growth in the company’s Creative Cloud, Document Cloud and Experience Cloud businesses.
Earlier Wednesday, Adobe announced that cosmetics giant Estée Lauder Companies (EL) has adopted Adobe Firefly generative AI technology for its digital marketing efforts. Estée Lauder is using Firefly to accelerate content production.
Adobe Firefly Services can handle repetitive tasks in workflows such as resizing and reformatting marketing assets for different media, Adobe said in a news release. Adobe has integrated Firefly with its Creative Cloud software.
Adobe stock has a middling IBD Composite Rating of 59 out of 99, according to IBD Stock Checkup. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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