Adobe sets a new revenue record but the stock is falling

One of the largest software companies in the world, Adobe Inc. (NASDAQ: ADBE) announced Q1 FY2024 earnings results after the market closed in the US on Thursday.

The company achieved revenue of $5.182 billion – a new record vs. $5.143 billion expected. Revenue grew by 11% year-over-year.

Earnings per share (EPS) was reported at $4.48 (up from $3.80 in 2023) vs. $4.377 per share estimate.

Adobe expects revenue of between $5.25 and $5.30 billion for the current quarter, which would fall below Wall Street estimate of $5.31 billion. EPS expected at between $4.35 and $4.40 vs. $4.37 per share estimate.

Company overview

• Founded: December 1982
• Headquarters: San Jose, California, United States
• Number of employees: 26,000 (2022)
• Industry: Software
• Key people: Shantanu Narayen (Chairman & CEO)

CEO commentary

“Adobe drove record Q1 revenue demonstrating strong momentum across Creative Cloud, Document Cloud and Experience Cloud,” Shantanu Narayen, CEO of Adobe said in a press release to shareholders. 

“We’ve done an incredible job harnessing the power of generative AI to deliver groundbreaking innovation across our product portfolio,” Narayen added.

Stock reaction

There was no major movement in Adobe share price before the earnings call. The stock was down by 0.54% at $570.45 a share.

Shares fell by around 10% in the after-hours trading despite beating analyst estimates on future guidance.

Stock performance

• 5 day: +2.59%
• 1 month: -3.39%
• 3 months: -2.43%
• Year-to-date: -4.38%
• 1 year: +61.47%

Adobe stock price targets

• BNP Paribas: $499
• Piper Sandler: $705
• Barclays: $700
• Stifel Nicolaus: $625
• Royal Bank of Canada: $615
• Citigroup: $675
• BMO Capital Markets: $690
• KGI Securities: $730
• DA Davidson: $640
• Oppenheimer: $660
• HSBC: $519
• Argus: $611
• Wolfe Research: $650
• Bank of America: $660

Adobe Inc. is the 42nd largest company in the world with a market cap of $258.15 billion, according to CompaniesMarketCap.

You can trade Adobe Inc. (NASDAQ: ADBE) and many other stocks from the NYSE, NASDAQ, HKEX and ASX with GO Markets as a Share CFD on the MetaTrader 5 platform. To find out more, go to “Trading” then select “Share CFDs”.

GO Markets offers pre-market and after-market trading on popular US Share CFDs.

Why trade during extended hours?

• Volatility never sleeps. Trade over earnings releases as they happen outside of main trading hours
• Reduce your risk and hedge your existing positions ahead of a new trading day
• Extended trading hours on popular US stocks means extended opportunities

Sources: Adobe Inc., TradingView, MarketWatch, MarketBeat, CompaniesMarketCap