Adobe beats Wall Street estimates in the fiscal first quarter
- Adobe Inc beats Wall Street estimates in the fiscal first quarter.
- The computer software firm expects £11.24 billion of annual revenue.
- Adobe says its finance chief John Murphy plans on retiring in 2021.
Adobe Inc. (NASDAQ: ADBE) published its earnings report for the fiscal first quarter on Tuesday that beat Wall Street estimates. On the back of its hawkish quarterly performance, the company also gave upbeat guidance for the full financial year. Chief Executive Shantanu Narayen commented on the financial report on Tuesday and said:
“Adobe drove record Q1 revenue, and we are raising our annual targets based on the tremendous opportunity across our business and our continued confidence in our global execution.”
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Adobe shares that you can learn to buy online here initially jumped 2% in extended trading on Tuesday but lost the entire gain later on. Including the price action, the stock is currently exchanging hands at £334 per share. In comparison, it had started the year 2021 at a much higher £353 per share.
Adobe’s Q1 financial results versus analysts’ estimates
Adobe said that its net income in the first quarter came in at £920 million that translates to £1.90 per share. In the same quarter last year, its net income was capped at a lower £694.52 million, or £1.44 per share.
On an adjusted basis, the computer software firm earned £2.28 per share in Q1. Adobe valued its revenue in the recent quarter at £2.84 billion that represents a 26% annualised growth. The American multinational also highlighted a 32% year over year increase in its digital media revenue in the first quarter.
According to FactSet, experts had forecast the company to post £2.73 billion of revenue in Q1. Their estimate for adjusted per-share earnings stood at £2.03. In separate news from the United States, Microsoft Corp said it wanted to buy Discord for more than £7.25 billion.
Adobe’s guidance for the full financial year
For the full financial year, Adobe now forecasts £11.24 billion of revenue and £8.62 of earnings per share on an adjusted basis. In comparison, analysts are calling for £11.03 billion of revenue and £8.20 of adjusted EPS this year.
Adobe also said on Tuesday that its CFO John Murphy plans on retiring in 2021. In the prior quarter (Q4), the San Jose-based company had noted a 14.44% growth in its revenue.
Adobe performed largely upbeat in the stock market last year with an annual gain of roughly 50%. At the time of writing, it is valued at £160.42 billion and has a price to earnings ratio of 42.43.