Adobe Inc.’s shares were flat on Tuesday, after the software company announced fiscal results for the first quarter that exceeded expectations and strong financial guidance for the year.
Adobe ADBE,
reported net income of $ 1.26 billion, or $ 2.61 per share, compared to net income of $ 955 million, or $ 1.98 per share, in the same quarter a year earlier. The company’s adjusted net income was $ 3.14 per share.
Revenue rose 26% to $ 3.91 billion, from $ 3.1 billion a year ago. Digital media revenue led the charge with $ 2.86 billion, an increase of 32% year on year.
“We have seen continued momentum since the pandemic hit all businesses, through Creative Cloud, Document Cloud and Experience Cloud,” Adobe Chief Financial Officer John Murphy told MarketWatch.
“We have been able to do business remotely, which has become the norm,” said Murphy, who is retiring this year.
Analysts surveyed by FactSet had expected net income of $ 2.79 per share in the first quarter, on revenue of $ 3.75 billion.
The Silicon Valley company also offered guidance for the second quarter and the full year that exceeded analysts’ estimates. For the fiscal year, Adobe expects revenue of $ 15.45 billion and adjusted earnings of $ 11.85 per share. FactSet analysts forecast $ 15.17 billion and $ 11.27 per share, respectively.
Adobe’s shares have fallen 8% so far this year. The broader S&P 500 SPX index,
improved 4% this year.
“We like Adobe’s monopolistic position within the creative cloud, where it offers essential solutions for an important creative demographics,” said Pat Walravens, equity research analyst at JMP Securities, when assessing Adobe’s continued performance.