Adobe share price down 2% after Q1 earnings revenue beat
The software company's stock is down despite reporting a better-than-expected Q1 earnings report.
Adobe share price is down in US after hours trading after beating Wall Street estimates in its first quarter(Q1) results. The company offered weak Q2 guidance after better-than-expected sales and subscription revenue in Adobe's Q1 earnings.
Adobe results: key figures
| Earnings per share | $1.71 |
| Revenue | $2.6 billion |
| Subscription revenue | $2.3 billion |
| Net income | $674.2 million |
Adobe share price down 2% as earning revenue beats estimates
Adobe’s earnings exceeded financial experts’ expectations. The software company’s earnings per share was $1.71, exceeding the $1.62 Wall Street predictions. Adobe’s Q1 revenue was $2.6 billion, slightly higher than the $2.55 billion projected. Subscription revenue was strong at $2.6 billion. The subscription software company also had a net income of $674.2 million, surpassing the $492.1 million from a year ago. Chief executive officer, (CEO), Shantanu Narayen, touted the success of Adobe’s Q1 results.
‘Adobe is fueling the creative economy, driving the paper-to-digital revolution and enabling businesses to transform through our leadership in customer experience management. Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud,’ said Narayen.
How do Adobe’s Q1 results compare to other software companies?
Adobe’s Q1 results were similar to its software competitor Salesforce. Salesforce’s Q4 2018 earnings were positive, with earnings and revenue beating estimates, as more businesses adopted subscription cloud software.
What’s next for Adobe’s Q2 results?
Despite better-than-expected Adobe Q1 earnings, Adobe’s guidance for Q2 is weak. The corporation predicted earnings per share of $1.77, lower than the projected $1.88. The company’s predicted revenue is $11.15 billion, keeping in line with Wall Street’s estimate of $11.16 billion.
Adobe’s Q1 results shows how digital media investment pays off
Adobe moved beyond just being the producer of Photoshop by investing in its Digital Experience Division, including its Document and Creative Cloud services. The acquisition of marketing company, Marketo, and e-commerce platform, Magento, also helped Adobe’s Q1 profits rise. Investors have shown that they approve of Adobe’s new expansion into more cloud software services.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
