Adobe Shares Fall After Company Projects Lower-Than-Expected 4Q Earnings

By Connor Hart

Shares of Adobe declined after the software maker forecast fiscal fourth-quarter results that missed analyst expectations.

The stock was down 9.3% to $531.90 in after-hours trading Thursday. Shares ended the regular session up 1.1% to $586.55, putting them down 1.7% since the beginning of the year.

The San Jose, Calif., company guided for fourth-quarter revenue between $5.5 billion and $5.55 billion, missing the $5.6 billion that analysts polled by FactSet expect.

Also for the current quarter, Adobe said it expects adjusted per-share earnings between $4.63 and $4.68, the midpoint of which is below the $4.67 that Wall Street analysts projected.

The company's lower-than-expected outlook came as it posted higher profit and revenue in its fiscal third quarter, boosted by demand for its artificial-intelligence enabled products.

After the bell, Adobe posted a profit of $1.68 billion for its three months ended Aug. 30, up from $1.4 billion a year earlier. Adjusted per-share earnings were $4.65, ahead of the $4.53 that analysts polled by FactSet forecast.

Revenue rose 11% to $5.41 billion, topping the $5.37 billion that analysts projected.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

September 12, 2024 17:24 ET (21:24 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.