Adobe Earnings (ADBE) 2nd quarter 2022

Shantanu Narayen, President and CEO of Adobe Systems Inc., during the SoftBank World Tokyo televised event in Kawasaki, Kanagawa Prefecture, Japan on Thursday, October 29, 2020. SoftBank World, the annual two-day event for customers and suppliers, concludes on Friday.

Akio Kon | Bloomberg | Getty Images

Shares of Adobe fell as much as 5% in extended trading on Thursday after the design software company gave instructions for the whole year that were below analysts’ expectations.

See how the company did it:

  • Profits: $ 3.35 per share, adjusted, compared to $ 3.31 per share as expected by analysts, according to Refinitiv.
  • Income: $ 4.39 billion, up from $ 4.34 billion as expected by analysts, according to Refinitiv.

For the entire financial year, Adobe reduced its lead. It was asking for $ 13.50 in adjusted earnings per share in revenue of $ 17.65 billion. Analysts polled by Refinitiv expected $ 13.66 billion in custom EPS and $ 17.85 billion in revenue. In December, guidance for fiscal year 2022 was $ 13.70 in adjusted earnings per share and $ 17.90 billion in revenue.

The company noted the war in Ukraine, the $ 175 million exchange rate wind and the summer season. Microsoft and Salesforce also cited the impact of the currencies when they issued worse-than-expected forecasts in recent weeks.

During the quarter ended June 3, the company’s revenue increased by 14% year-on-year, according to a statement. Adobe’s second-quarter net income of $ 1.18 billion rose about 6 percent.

Adobe’s Digital Media division, which includes Creative Cloud and Document Cloud products, reported revenue of $ 3.20 billion, up 15% from the StreetAccount consensus estimate of $ 3.16 billion.

Digital Experience, which includes Adobe Experience Cloud used by companies for marketing and commerce, contributed $ 1.10 billion, an increase of 17% and more than the $ 1.08 billion StreetAccount consensus.

During the quarter, Adobe announced price increases for some Creative Cloud subscriptions, citing the release of new applications, and said that a version of the Experience Cloud was available to healthcare clients.

Shares of Adobe have fallen about 36% since the beginning of the year, while the S&P 500 index has fallen by 23% over the same period.

Executives will discuss the results with analysts in a teleconference starting at 5 p.m. ET.

This is breaking news. Check back here for updates.

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Adobe Earnings (ADBE) 2nd quarter 2022

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