Adobe shares closed down nearly 14% on Friday after the company reported first-quarter results that beat estimates but delivered a light quarterly revenue forecast.
The move marked the stock’s steepest decline since Sept. 15, 2022, when shares closed down 16.8%.
The design software company posted adjusted earnings per share of $4.48, above the $4.38 analysts were expecting, according to LSEG, formerly known as Refinitiv. Its revenue of $5.18 billion exceeded the $5.14 billion analysts estimated.
For the current quarter, Adobe expects adjusted earnings per share of $4.35 to $4.40, while analysts were expecting $4.38. It said revenue will total $5.25 billion to $5.30 billion, slightly below the $5.31 billion estimated. The company also announced a $25 billion share buyback.
Adobe also recently launched an artificial intelligence assistant for its Reader and Acrobat applications that can help users digest information from long PDF documents.
www.cnbc.com/2024/03/15/adobe-shares-drop-12percent-on-weak-quarterly-revenue-guidance-.html