Shares of Adobe (NASDAQ:ADBE) gained in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2023. Earnings per share came in at $3.91, which beat analysts’ consensus estimate of $3.79 per share. Sales increased by 9.8% year-over-year, with revenue hitting $4.82 billion. This beat analysts’ expectations of $4.78 billion.
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Adobe offered up some segment data, noting that its Remaining Performance Obligations out of the second quarter came to $15.22 billion. Further, it noted that it bought back 2.7 million shares of stock over the course of the quarter.
But Adobe also offered up no shortage of guidance, including down to next quarter’s projected segment data. First, the big numbers: Earnings per share are projected to be between $3.95 and $4, which beats analyst projections calling for $3.88 per share. Further, total revenue is expected between $4.83 billion and $4.87 billion, mostly in line with the consensus figure calling for $4.86 billion. In addition, Adobe expects new active recurring revenue of around $410 million and that its digital media segment will post between $3.55 billion and $3.57 billion. Finally, the digital experience sector is expected to post between $1.21 billion and $1.23 billion.
Overall, Wall Street has a consensus price target of $463.63 on Adobe stock, implying 5.51% downside risk, as indicated by the graphic above.
