2023-03-16 11:32:36 ET
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.
For further details see:
Why Adobe Stock Popped After Q1 Earnings