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Key Takeaways
- Adobe shares dropped in after-hours trading Thursday as the company reported first-quarter earnings surpassing analyst estimates, but issued soft guidance for the second quarter.
- The company’s revenue for the first fiscal quarter of 2024 at $5.18 billion hit a record high that beat estimates, while net income and diluted earnings per share came in at $2.05 billion and $4.48, respectively, also above projections.
- However, Adobe issued a weak outlook for second quarter, guiding for revenue between $5.25 billion and $5.3 billion, while analysts anticipated $5.3 billion.
- The company did not include guidance for the full year, as it did in the first quarter of 2023.
- Adobe also announced a $25 billion buyback program.
Adobe (ADBE) shares tumbled over 10% in after-hours trading Thursday as the company reported first-quarter earnings beating analyst estimates, but issued soft guidance for the second quarter.
The company reported first-quarter revenue for fiscal 2024 of $5.18 billion. This record high exceeded analyst estimates compiled by Visible Alpha and represented 11% year-over-year growth.
Adobe’s net income for the quarter at $2.05 billion also beat analysts’ expectations and was up from the previous quarter and year-ago period. Diluted earnings per share (EPS) at $4.48 surpassed projections and grew from the quarter and year prior as well.
The company said it expects revenue in the second quarter of between $5.25 billion and $5.3 billion. However, analysts had anticipated guidance at the higher end of this range at $5.3 billion.
Adobe’s outlook for diluted EPS in the coming quarter was $4.35 to $4.40, in line with analyst expectations at $4.35.
The company did not include guidance for the full year as it did in the first quarter of 2023.
In its first quarter of 2024, Adobe filed to end its acquisition of Figma, incurring a $1 billion termination fee.
The company also announced a $25 billion buyback program.
Adobe shares dropped more than 10% in after-hours trading to $511. Despite the loss, the stock has gained more than 70% in the past year.