Software maker Adobe (ADBE) has reported fourth-quarter 2024 financial results that surpassed Wall Street’s targets on the top and bottom lines.
The company behind creative software products such as Illustrator and Photoshop reported
earnings per share (EPS) of $5.08 U.S., which was ahead of forecasts that called for $4.97 U.S.
Revenue in the final three months of last year came in at $5.71 billion U.S., which topped analysts’ consensus estimates of $5.66 billion U.S. Sales were up 10% from a year earlier.
Despite the strong print, Adobe issued forward guidance that underwhelmed analysts and investors, sending its stock down 5% in after hours trading.
Management reiterated their full-year 2025 outlook that calls for revenue of $23.30 billion U.S. to $23.60 billion U.S.
Earnings for all of this year are forecast at $20.20 U.S. to $20.50 U.S. per share.
Wall Street had revenue of $23.50 billion U.S. and earnings of $20.39 U.S. per share penciled in for the company.
Adobe also continues to face questions about the impact that artificial intelligence (A.I.) will have on its products moving forward.
The company has responded by adding A.I. functions to its most popular creative software products such as Firefly, InDesign, and Creative Cloud.
Other concerns weighing on Adobe are risks that businesses and consumers could pullback their spending on technology should the U.S. economy enter a recession.
Prior to today (March 13), Adobe’s stock had declined 24% over the last 12 months to trade at $438.60 U.S. per share.
