Adobe Inc (NASDAQ: ADBE) reported market-beating results for its fiscal second quarter on Thursday. Shares still slid 5.0% after-hours on lowered full-year guidance for revenue.
Adobe Q2 financial highlights
Earned $1.18 billion in Q2 versus the year-ago figure of $1.12 billionPer-share earnings of $2.49 were well above last year’s $2.32On an adjusted basis, EPS stood at $3.35 in the recent quarterRevenue jumped 14% to $4.39 billion as per the earnings press releaseFactSet consensus was for $3.31 of adjusted EPS on $4.35 billion in sales
Revenue from Digital Media, Creative Software, and Document Cloud was up 15%, 12%, and 27%, respectively. Adobe ended the quarter with $13.82 billion in remaining performance obligations.
Future outlook and expert’s remarks
Adobe cited the decision to pull out of Russia and Belarus, summer seasonality, and foreign-exchange headwinds as it lowered its revenue guidance for the full year. The stock is down nearly 40% for the year.
It now forecasts $17.65 billion in revenue and $13.50 of adjusted EPS. In comparison, analysts had called for $13.65 a share of adjusted earnings on $17.85 billion in revenue. Discussing the earnings report on CNBC’s “Closing Bell: Overtime”, Decatur Capital’s Degas Wright said:
It did beat on earnings and revenue. So, that’s positive. The stock always goes down on announcement day so I’m not surprised. We’re satisfied with this because their cloud subscription revenue beat by 15%. So, Adobe is still looking like a stock that we’re holding.
The post Adobe shares down on Q2 results: ‘still a stock we’re holding’ appeared first on Invezz.
