Why Adobe Stock Popped After Q1 Earnings
Shares of Adobe (NASDAQ: ADBE) ticked up a solid 4.1% (through 10:45 a.m. ET) on Thursday morning after the company reported earnings that beat on both the top and bottom lines.
Analysts had expected the software company to report only $3.68 per share in adjusted earnings for its fiscal first quarter of 2023, on sales of $4.62 billion. In fact, Adobe earned $3.80 per share, and sales were $4.66 billion -- and Adobe beat on guidance as well.
With sales rising 9% despite currency exchange rate headwinds, Adobe set a new record for quarterly sales in fiscal Q1. Earnings were also better than expected -- and helped by the fact that Adobe bought back 5 million shares in the quarter, concentrating overall profits among fewer shares outstanding. Nevertheless, when calculated according to generally accepted accounting principles (GAAP), Adobe's earnings growth was less impressive than the headline adjusted profits make things look.
Source Fool.com
