Adobe Systems Inc. shares (ADBE) were up 3.5% in after-hours trading Thursday after the software company beat expectations with its fiscal first-quarter report but delivered a lower-than-anticipated outlook for the current quarter, citing coronavirus headwinds. The company posted net income of $955 million, or $1.96 a share, up from $674 million, or $1.36 a share, in the year-prior quarter. The company reported adjusted earnings per share of $2.27, up from $1.71 in the year-prior period and ahead of the $2.23 that analysts surveyed by FactSet had been modeling. Adobe's revenue rose to $3.09 billion from $2.6 billion a year earlier, whereas analysts had been modeling $3.05 billion. The company expects fiscal second-quarter revenue of about $3.175 billion and adjusted EPS of $2.35. Analysts were modeling revenue of $3.22 billion and adjusted EPS of $2.33. Adobe said in its release that the targets "factor the expected impact of the global uncertainty caused by the COVID-19 situation based on the latest data and information available," referring to the disease brought on by the novel coronavirus. Adobe expects that enterprises could delay bookings decisions, reduce marketing spending, and delay consulting service implementations. Consumers are reducing their spending in affected countries, Adobe said, and software-license revenue driven by channel partners could also be affected. Adobe's stock is down about 13% so far this year, as the S&P 500 has lost 22%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 12, 2020 16:16 ET (20:16 GMT)
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