Adobe (ADBE.US) shares rose over 3.5% on Friday after the software company recorded better than expected quarterly earnings, while revenue matched analysts’ estimates. Company also issued solid financial guidance for the current quarter.
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Company earned $3.60 per share which is a 13.0% increase YoY, beating Refinitiv analysts’ estimates of $3.50 per share
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Q4 2022 revenue increased by 10% to $4.53 billion, which came in line with Wall Street estimates.
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For the first quarter of 2023 company expects revenue in the range of $4.60 billion to $4.64 billion — the top end of which matched analyst expectations.
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Q1 2023 EPS is expected in the region of $3.65 to $3.70 which topped analysts consensus of $3.64.
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Adobe forecasts full-year earnings of $15.15 to $15.45 a share on revenue of $19.1 billion to $19.3 billion, while analysts surveyed by FactSet expected $15.33 a share on revenue of $19.35 billion. However new Digital Media ARR is expected to generate $1.65 billion, well below market estimates of $1.75 billion.
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Management pointed out the outlook did not include any contribution from its pending acquisition of startup Figma, though the deal has not been finalized amid reported scrutiny from U.S. regulators. According to Bloomberg, Adobe expects Figma to expand its user base from design professionals to casual consumers and strengthen its position in digital creation and marketing. Adobe’s president of digital media David Wadhwani, reassured investors that the deal is likely to close in 2023 and that's definitely something worth paying attention to.
Adobe key quarterly figures. It is worth noting that the difficult economic conditions did not limit the demand for the company's products this year, which is a good sign should a deeper recession emerge in 2023. Source: AlphaStreet
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Adobe (ADBE.US) stock launched today’s session with a bullish price gap, however buyers struggle to break above key resistance at $350.30, which is marked with previous price reactions and 78.6% Fibonacci retracement of the upward wave launched in March 2020. Should a break higher occur, 200 SMA (red line) should act as next resistance. Nevertheless as long as price sits below $350.30 level, another downward impulse may be launched towards recent lows at $274.15. Source: xStation5
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