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.

US dollar after Adobe Q1 results Source: Bloomberg

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.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.