Adobe (NASDAQ: ADBE) shares tumbled over 10% Thursday after reporting fourth-quarter earnings as well as disappointing revenue forecast for its fiscal first quarter.
“Adobe’s record performance in Q4 resulted in fiscal 2021 revenue exceeding $15 billion,” said Shantanu Narayen, chairman, and CEO, Adobe. “Adobe’s vision, category leadership, ground-breaking technology, and large and loyal customer base position us well for fiscal 2022 and beyond.”
The American multinational computer software company reported earnings of USD3.20 per share, meeting the expectations of USD3.20 a share. Revenue amounted to USD4.11 Billion, higher than analysts anticipated USD4.09 Billion.
Furthermore, the company revealed its fiscal first-quarter outlook was USD4.23 Billion, lower than analysts predicted revenue of USD4.34 Billion, according to Refinitiv. Adobe also foresees a full-year sales forecast of USD17.9 Billion, which is under analysts’ estimates for revenue of USD18.16 Billion.
“We believe the shares will be weak today as concerns about a slowing spending environment and conservative guidance proved to be correct,” wrote analysts from Atlantic Equities, in a note after Adobe’s fourth-quarter earnings report. The firm has a buy rating on the stock and said the outlook likely reflects a “muted spending environment observed across the sector.”