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Adobe CEO Shantanu Narayen speaks in an interview with CNBC at the New York Stock Exchange on February 20, 2024.
Brendan McDermid | Reuters
adobe report Third quarter results The company’s sales and profits beat Wall Street expectations on Thursday, but the stock fell 10% in after-hours trading as it missed fourth-quarter guidance.
Here’s how Adobe’s performance in the quarter ended in August compared to the LSEG consensus forecast:
- income: US$5.41 billion, expected US$5.37 billion
- Earnings per share: Adjusted $4.65, estimated $4.53
Adobe said it expects fourth-quarter earnings per share of $4.63 to $4.68 and revenue of $5.5 billion to $5.55 billion. Analysts polled by London Stock Exchange Group (LSEG) expected earnings of $4.67 per share on sales of $5.61 billion.
Adobe said net income for the quarter was $1.68 billion, or $3.76 per diluted share. That’s up from $1.4 billion, or $3.05 per share, a year earlier.
Adobe’s largest business unit, digital media, which includes subscriptions to the company’s creative cloud that uses artificial intelligence-generated artificial intelligence called Firefly, grew at an annual rate of 11%, with sales reaching $4 billion.
Adobe’s subscription revenue this quarter totaled $5.18 billion, an increase of 11% from the same period last year.
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