June 27, 2022

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Adobe (ADBE) earnings Q2 2022

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Shantanu Narayen, chairman and chief executive officer of Adobe Systems Inc., during a telecast of the SoftBank World event in Tokyo arranged in Kawasaki, Kanagawa Prefecture, Japan, on Thursday, Oct. 29, 2020. SoftBank World, the company’s annual two-day event for customers and suppliers, ends Friday.

Akio Kon | Bloomberg | Getty Images

Adobe shares fell as much as 5% in extended trading on Thursday after the design software maker gave full-year guidance that fell short of analysts’ expectations.

Here’s how the company did:

  • Earnings: $3.35 per share, adjusted, vs. $3.31 per share as expected by analysts, according to Refinitiv.
  • Revenue: $4.39 billion, vs. $4.34 billion as expected by analysts, according to Refinitiv.

For the full fiscal year, Adobe reduced its guidance. It called for $13.50 in adjusted earnings per share on $17.65 billion in revenue. Analysts polled by Refinitiv had expected $13.66 in adjusted EPS and revenue of $17.85 billion. In December the guidance for the 2022 fiscal year was $13.70 in adjusted earnings per share and $17.90 billion in revenue.

The company pointed to the war in Ukraine, a $175 million foreign-exchange headwind, and summer seasonality. Microsoft and Salesforce also cited currency impact when they issued worse-than-expected projections in recent weeks. The U.S. dollar has gained strength against the euro, the Japanese yen and other currencies this year as the Federal Reserve has pushed up interest rates to stave off inflation.

The economic environment in the quarter was “uncertain,” Dan Durn, Adobe’s finance chief, said on a conference call with analysts. He said management was happy with the company’s success in talent acquisition in what he called a competitive labor market.

During the quarter ended June 3, the company’s revenue grew 14% year over year, according to a statement. Adobe’s net income in the fiscal second quarter, at $1.18 billion, was up about 6%.

Adobe’s Digital Media segment, which includes Creative Cloud and…



2022-06-16 16:23:00

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