Late on Wednesday, Adobe scared away investors on the NASDAQ with weak forecasts for the coming fiscal year. The software company was able to record more sales recently, but that couldn’t save the mood.
• Adobe with more sales
• Forecasts for 2025 disappoint
• Adobe shares collapse
The evening before, Adobe presented its figures for the past quarter. Accordingly, the software company recorded sales of $4.15 billion in the digital media sector in the past three months, as Adobe reported – an increase of 12 percent compared to the previous year. Meanwhile, revenue from its document cloud unit rose about 17 percent to $843 million, while revenue from its creative segment rose 10 percent to $3.30 billion last quarter.
Overall, Adobe achieved sales of $5.61 billion in the fourth quarter – around 11 percent more than in the previous year. Adjusted earnings per share were $4.81. Adobe was able to exceed analysts’ expectations. Experts surveyed by FactSet had previously expected sales of $5.54 billion and adjusted earnings per share of $4.67.
“Adobe achieved record revenue in fiscal 2024, underscoring strong demand and the critical role of Creative Cloud, Document Cloud and Experience Cloud in driving the AI economy,” emphasized CEO Shantanu Narayen.
Adobe shocks with weak prospects
However, the US company has forecast weaker sales for next year, also in view of increasing competition in the field of AI. Sales for the 2025 financial year are expected to be between $23.30 and $23.55 billion. The digital media segment is expected to account for between $17.25 and $17.40 billion.
Wall Street analysts polled by FactSet had expected revenue of $23.78 billion, with about $17.65 billion budgeted for digital media. According to Adobe, adjusted earnings are expected to be between $20.20 and $20.50 in the coming fiscal year, whereas the FactSet consensus was $20.52.
CEO tries to save spirits
Despite the weak predictions, Adobe CEO and Chairman Narayen remained confident. The company’s “highly differentiated technology platforms, rapid pace of innovation, diversified go-to-market and integration of our clouds” positioned the company for “a great year ahead.” However, investors were hardly impressed by this confidence – looking at the forecasts, they saw red yesterday evening.
Adobe shares on the NASDAQ under pressure
Investors reacted disappointedly to the figures that Adobe announced for the coming year, sending the software company’s shares down 9.17 percent in after-hours trading. This means that the paper recently cost 499.50 US dollars. Over the year, there is currently a discount of 7.82 percent on the price board.
Editorial team finanzen.net
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