Adobe We reported fiscal third quarter results that surpassed analyst estimates. The design software maker’s stocks rose in expansion trading.
Here’s how the company did it compared to the LSEG consensus:
Earnings per share: $5.31 adjusted vs. $5.18 forecast: $59.9 billion vs. $59.1 billion
Revenue for the quarter ended August 29th increased 11% from $5.4 billion the previous year, Adobe said in a statement. Net income rose to $1.77 billion ($4.18 per share) from $1.68 billion a year ago, or $3.76 per share.
In the fourth quarter, it said its adjusted earnings per share would be between $5.35 and $5.40, with an average analyst estimate of $5.34. According to LSEG, Adobe’s quarterly revenue guidance ranges between $6.08 billion and $6.13 billion.
Adobe said he expects annual revenue from his digital media business to increase 11.3% for the fiscal year. According to StreetAccount, digital media revenue in the fourth quarter went from $4.53 billion to $4.566 billion, breaking an estimate of an average of $4.51 billion.
The company injects artificial intelligence into its entire product portfolio.
“Our AI-impacted ARRs exceed $5 billion from over $3.5 billion to leaving fiscal year 2024, exceeding AI-Firs’ ARR targets for the entire year,” CEO Shantanu Narayen told analysts during a conference call.
As of Thursday’s end, Adobe’s stock has fallen 21% this year, with 14% gains in the heavily low-performing high-tech peers and the broader Nasdaq.
