Wall Street brokerages remain bullish on Adobe amid 'conservative' guidance
Adobe Systems (NASDAQ:ADBE) shares dropped more than 6% pre-market Thursday after the company reported FQ4 results and offered guidance.
Q4 EPS came in at $4.27, compared to the consensus estimate of $4.13. Revenue grew 12% year-over-year (up 13% year-over-year in constant currency) to $5.05 billion, compared to the consensus estimate of $5.01B.
Digital Media segment revenue grew 13% year-over-year to $3.72B. Within this segment, Creative revenue climbed to $3.00B, representing a 12% year-over-year growth. Document Cloud generated $721 million in revenue, a 16% increase from the previous year.
Digital Experience segment revenue was $1.27B, representing 10% year-over-year growth. Digital Experience subscription revenue grew 12% year-over-year to $1.12B.
“Adobe drove record revenue of $19.41 billion in FY23 and 17 percent year-over-year EPS growth, with strong momentum across Creative Cloud, Document Cloud and Experience Cloud,” said CEO Shantanu Narayen.
For Q1/24, the company expects EPS in the range of $4.35-$4.40, compared to the consensus of $4.26, and revenue in the range of $5.1-$5.15B, worse than the consensus of $5.19B.
For the full year, the company sees EPS at $17.60-$18.00, compared to the consensus of $18.00, and revenue at $21.3-$21.5B, worse than the consensus of $21.73B. Moreover, Adobe sees a new FY24 ARR at $1.9 billion, below the expected $2.02 billion.
Analysts commented that the results were «mixed.»
«FQ4 was unexpectedly messy especially following a strong Q3 and Analyst Day, which may question the confidence level in growth durability. We’d expect the stock to take a breather here and we are lowering our estimates modestly, flowing in the softer guidance and smaller price tailwinds in FY23,» analysts
Read more on investing.com
