Adobe (NASDAQ:ADBE) reported its quarterly earnings results after hours Thursday, bringing in revenue and earnings that increased year-over-year, but an outlook that failed to live up to expectations was key in ADBE stock sliding a bit.
The software developer, based out of San Jose, Calif., reported first-quarter earnings of $1.36 per share, or $1.71 per share on an adjusted basis, gaining roughly 10% when compared to the year-ago period. Analysts were calling for the company’s first three months of its fiscal 2019 to yield adjusted earnings of $1.62 per share.
Adobe added that its revenue for the period amounted to $2.5 billion, which is about 25% higher than during its first quarter of fiscal 2018. The Wall Street consensus estimate predicted an revenue of $2.55 billion.
The software maker’s Digital Media segment raked in $1.78 billion in sales. Its Creative segment amassed $1.49 billion, Digital Experience brought in $743 million, while Document Cloud brought in record revenue of $282 million during the period.
For its second quarter of fiscal 2019, Adobe projects adjusted earnings at $1.77 per share, below the $1.88 per share that Wall Street calls for. Revenue is predicted to be $2.7 billion, below the $2.72 billion that analysts see.
“Adobe is fueling the creative economy, driving the paper-to-digital revolution and enabling businesses to transform through our leadership in customer experience management,” said Shantanu Narayen, president and CEO, Adobe. “Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud.”
ADBE stock was up about 1.3% on Thursday during regular trading hours in anticipation of the company’s results. The weak guidance played a part in Adobe shares declining about 2.1% after the bell.