Adobe Systems (ADBE.US) stock plunged 10% on Wednesday after the software maker issued a disappointing financial outlook, which overshadowed upbeat quarterly results.
-
The company earned $3.37 per share, slightly above analysts’ estimates of $3.34 per share, while revenue rose 9% from a year ago to $4.26 billion and slightly beat market projections of $4.24 billion.
-
Adobe Chief Executive Shantanu Narayen said the company delivered record revenue because its Creative Cloud, Document Cloud and Experience Cloud products are all pivotal in driving the digital economy.
-
However, Adobe lowered expectations for a key subscription revenue measure, expecting a $75 million after the company halted all new sales of its products and services in Russia and Belarus in response to the Ukrainian conflict.
-
The company will continue to provide digital media services in Ukraine, however annual recurring revenue from this country will most likely drop to around $12 million. The result will be a total revenue shortfall of $87 million for the full year, Adobe said.
-
For the second quarter, Adobe expected revenue of $4.36 billion and adjusted earnings of $3.30 per share, below analyst estimates of $4.39 billion revenue and earnings of $3.35 per share.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Adobe Systems (ADBE.US) stock fell sharply on Wednesday and is currently testing major support zone around $425.00, which is marked with previous price reactions, lower limit of the 1:1 structure and 61.8% Fibonacci retracement of the upward wave launched in March 2020. Should break lower occur, the next target for sellers is located around $351.00. However, if buyers manage to halt declines, then another upward impulse towards major resistance at $477.75 may be launched. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
