Adobe Q1 results: ‘our momentum positions us for success in 2022’

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is a News Reporter at Invezz covering the European, Asian and North America stock markets. Wajeeh has 5… read more.
on Mar 22, 2022
  • Adobe Inc's Q1 financial results topped Wall Street expectations.
  • The company gave weaker-than-expected guidance for the future.
  • Adobe shares slid roughly 2.0% in after-hours trading on Tuesday.

Adobe Inc (NASDAQ: ADBE) on Tuesday reported market-beating results for its fiscal first quarter. Shares still slid 2.0% in extended trading on tepid guidance.

Adobe Q1 financial highlights

  • Net income printed at $1.27 billion that translates to $2.66 per share.
  • In the same quarter last year, net income was $1.26 billion ($2.61 a share).
  • Adjusted EPS came in at $3.37, as per the earnings press release.
  • Revenue climbed 9.0% YoY in the first quarter to a record $4.26 billion.
  • FactSet consensus was for $3.34 of adjusted EPS on $4.24 billion in revenue.
  • Digital Media brought in $3.1 billion in revenue this quarter.

Earlier this week, Morgan Stanley announced an “overweight” rating on ADBE with a price target of $652 that represents a 45% upside from here.

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Adobe guidance for fiscal Q2

For the fiscal Q2, Adobe forecasts $3.30 of per-share earnings on $4.34 billion in revenue. In comparison, analysts were at $3.35 for EPS and $4.40 billion in revenue. In the earnings press release, CFO Dan Durn said:

Adobe’s Q1 results reflect the company’s strong execution and resilience through unprecedented circumstances. Our momentum, product innovation and immense market opportunity position us for success in 2022 and beyond.

Among notable supporters of ADBE is CNBC’s Jim Cramer.

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