Adobe Inc. shares were flat in extended trading Tuesday after the software company announced fiscal first-quarter results that beat expectations and strong financial guidance for the year.
reported net income of $1.26 billion, or $2.61 a share, compared with net income of $955 million, or $1.98 a share, in the year-ago quarter. The company’s adjusted net income was $3.14 a share.
Revenue climbed 26% to $3.91 billion from $3.1 billion a year ago. Digital-media revenue led the charge with $2.86 billion, up 32% year-over-year.
“We have seen continued momentum since the pandemic hit across the business, through the Creative Cloud, Document Cloud, and Experience Cloud,” Adobe Chief Financial Officer John Murphy told MarketWatch.
“We’ve been able to pivot well in doing business in a remote way, which has become the norm,” said Murphy, who is retiring this year.
Analysts surveyed by FactSet had expected first-quarter net income of $2.79 a share on revenue of $3.75 billion.
The Silicon Valley company also offered second-quarter and full-year guidance that exceeded analyst estimates. For the fiscal year, Adobe expects revenue of $15.45 billion and adjusted earnings of $11.85 a share. FactSet analysts have forecast $15.17 billion and $11.27 a share, respectively.
Adobe’s stock is down 8% so far this year. The broader S&P 500 index
has improved 4% this year.
“We like Adobe’s monopolistic position within the creative cloud, where it delivers essential solutions to an important demography of creators,” JMP Securities equity research analyst Pat Walravens said in assessing Adobe’s ongoing performance.