Adobe stock jumps as creative software firm surpasses quarterly target

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Digital media and marketing software firm adobe ,adbe) late Wednesday exceeded Wall Street’s and earnings targets for its fiscal first quarter and raised higher guidance for the full year. Shares of ADBE surged in extended trading.


The San Jose, California-based company earned $3.80 per share on adjusted of $4.66 billion in the quarter ended March 3. Analysts polled by FactSet expected Adobe to earn $3.68 per share on sales of $4.62 billion. On a year-over-year basis, Adobe’s revenue increased 13% while sales increased 9%.

For the current quarter, Adobe forecast adjusted earnings per share of $3.78 on of $4.77 billion. This is based on the midpoint of its guidance. Analysts had expected earnings of $3.76 per share on sales of $4.75 billion in the fiscal second quarter.

For the full year, Adobe raised its target for net annual recurring revenue from its core digital media business to $1.7 billion from $1.65 billion.

Also, for its fiscal 2023, Adobe anticipates adjusted earnings per share of $15.30 to $15.60. The $15.45 midpoint remained above Wall Street’s target of $15.29. Adobe’s previous earnings outlook called for $15.15 to $15.45 per share.

ADBE stock soars after report

“Adobe generated record revenue in the first quarter, and we are raising our annual targets based on the tremendous market opportunity and continued confidence in our execution,” Chief Executive Shantanu Narayen said in a news release. “Creative Cloud, Document Cloud and Experience Cloud are mission-critical to fuel the global digital economy.”

In later trading today on the stock market, ADBE stock rose 4.6% to 349.10. During Wednesday’s regular session, ADBE stock closed up a fraction at 333.61.

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Adobe has three cloud computing businesses. Its largest, Creative Cloud, includes software for creative professionals such as Photoshop and Illustrator. Document Cloud includes its Acrobat and e-signature offerings. Experience Cloud provides marketing software and services.

Figma deal uncertainty drags Adobe stock

ADBE stock has been under pressure in recent weeks amid reports that the US Department of Justice plans to block Adobe’s $20 billion acquisition of Figma. The Justice Department is concerned that Adobe’s purchase of Figma will reduce the options for design software used by creative professionals. Adobe makes software applications such as Photoshop, Illustrator, Premiere and Acrobat.

Adobe announced its intention to buy Figma, a web-first collaborative design platform, in September.

Follow Patrick Seitz on Twitter @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.

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