Adobe Inc. has reported strong financial results for its fourth quarter, with earnings reaching $1.68 billion, or $3.79 per share, surpassing last year's figures of $1.48 billion, or $3.23 per share. The company's revenue also saw an increase of 11.1%, totaling $5.606 billion. Despite these positive results, Adobe's shares fell by 9% in after-hours trading and 11% in pre-market trading, indicating a disconnect between the earnings report and market expectations. [b27ab2df]
CEO Shantanu Narayen emphasized the robust demand across Adobe's key products, including Creative Cloud, Document Cloud, and Experience Cloud. This demand reflects the company's strategic focus on enhancing its cloud offerings, which are critical in today's digital landscape. [b27ab2df]
Looking forward, Adobe has projected its first-quarter earnings per share (EPS) to be between $3.85 and $3.90, with adjusted EPS expected to range from $4.95 to $5.00. For the fiscal year 2025, the company forecasts an EPS of $15.80 to $16.10, with adjusted EPS anticipated to be between $20.20 and $20.50. Total revenue for FY2025 is expected to be in the range of $23.30 to $23.55 billion. [b27ab2df]
However, Adobe has also warned that foreign exchange effects could impact its revenue by approximately $200 million, which may have contributed to the cautious market reaction. In the previous year, Adobe reported Q1 earnings of $1.36 per share, with adjusted earnings at $4.48 per share and revenue of $5.18 billion. [b27ab2df]