Adobe shares fell Friday after the digital media and marketing software firm gave disappointing guidance for the current quarter and full year. ADBE stock was already under pressure heading into its latest earnings report.
The San Jose, Calif.-based company late Thursday said it earned an adjusted $3.35 a share on sales of $4.39 billion in the quarter ended June 3. Analysts polled by FactSet expected Adobe earnings of $3.31 on sales of $4.35 billion. On a year-over-year basis, Adobe earnings rose 11% while sales climbed 14%.
For the current quarter, Adobe forecast adjusted earnings of $3.33 a share on sales of $4.43 billion. However, analysts had predicted earnings of $3.39 on sales of $4.51 billion in the fiscal third quarter.
For the full year, Adobe predicted adjusted earnings of $13.50 a share on sales of $17.65 billion. But Wall Street was looking for earnings of $13.65 on sales of $17.85 billion.
Adobe cited higher taxes, foreign-exchange headwinds, and Russia's war with Ukraine as factors negatively impacting its guidance.
ADBE Stock Sinks On Outlook Miss
Adobe delivered a similar quarterly report on March 22 with its fiscal first-quarter report. It beat Wall Street's targets for the quarter ended March 4 but came up short with its outlook.
On the stock market today, ADBE stock dropped 1.2% to close at 360.79. During the regular session Thursday, ADBE stock fell 3.1% to 365.08 amid a broad market sell-off.
"Adobe achieved record Q2 revenue with strong demand across Creative Cloud, Document Cloud and Experience Cloud," Chief Executive Shantanu Narayen said in a news release.
He added, "We are winning in our established businesses and seeing significant momentum in new categories from content authoring for a broad base of creators to PDF functionality on the web to the leading real-time customer data platform for global enterprises."
ADBE stock has a middling IBD Composite Rating of 53 out of 99, according to IBD Stock Checkup. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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