Adobe Stock Falls on Mixed Quarterly Report, $20 Billion Acquisition

Digital media and marketing software company Adobe (ADBE) on Thursday beat Wall Street’s profit target for the fiscal third quarter, but sales were slightly below views. It also announced a deal to acquire Figma, the first collaborative web design platform, for about $20 billion. ADBE shares fell in early trading.




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The San Jose, Calif.-based company earned an adjusted $3.40 per share on sales of $4.43 billion in the quarter ended Sept. 2. Analysts polled by FactSet expected Adobe to earn $3.35 per share on sales of $4.44 billion. On a year-over-year basis, Adobe’s earnings rose 9%, while sales increased 13%.

For the current quarter, Adobe forecasts adjusted earnings of $3.50 per share on sales of $4.52 billion. Analysts had expected earnings of $3.47 per share on sales of $4.6 billion in the fiscal fourth quarter. In the year-earlier period, Adobe earned $3.20 per share on sales of $4.11 billion.

Adobe also said it is buying Figma, which makes a design platform for teams to create products together. Adobe expects the cash and stock transaction to close in 2023, pending regulatory approvals and other closing conditions.

ADBE shares decline

In the pre-market trade of the stock market todayADBE shares fell 10% to 334.48.

Details of the income statement follow.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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