Adobe shares fall 10% after disappointing financial forecast for 2022
Adobe (ADBE), on Thursday, after the close of trading, announced its financial results for the 4th fiscal quarter of 2021, which ended on December 20.
Adobe’s profit increased by 14% (compared to last year’s value) to $3.20 per share, which was in line with the average forecasts of market analysts. Revenues increased by 20% to $4.11 billion, higher than the analytical estimate of $4.09 billion—quarterly revenue and profit statistics on the Adobe Reports page.
The company expects fin in the first quarter of 2022; the year (ending in February 2022) of earnings per share growth to $3.35 with total sales revenue of $4.23. below analysts’ forecasts of $3.39 earnings per share with sales of $4.33 billion.
The entire fiscal year 2022, Adobe expects to make a profit of $13.70 per share compared to $12.48 for the whole of the fiscal year 2021, but this is below the analytical estimates of $14.26.
The company’s projected annual sales revenue is $17.9 billion. We compared it to $15.79 billion. The entire 2021 financial year is against Wall Street’s expectations of $18.16 billion. The fall in Adobe shares reflects the overall decline in the sector of cloud software companies.
Shares of Abobe (ADBE), which have increased by 13.2% since the beginning of the year, have fallen by 15.64% month (the sharpest monthly decline since June 2010), having suffered three worst days of the year. Trading signals and forecasts for Adobe stocks.
On Tuesday, JPMorgan analysts downgraded Adobe’s stock from” buy” to “neutral” as part of their series of downgrades of software companies’ stock ratings. Other market experts explained Adobe’s conservative forecasts and the fall in the shares of cloud developers by concerns that a record rise in inflation would slow down their sales.
The expectation of a rate hike and the announcement of the Fed’s forecasts for a three-fold increase next year also put pressure on the valuation of software stocks. Thus, ServiceNow (NOW) shares fell by 12.7% month and by 5.9% on Thursday, Salesforce (CRM) shares by 17.6% and 2.7%, and Snowflake (SNOW) shares by 19% and 9.8% over the same periods, respectively.
The WisdomTree Cloud Computing exchange-traded fund (WCLD UCITS ETF), consisting of shares of cloud software companies, has fallen by 20.55% over the past month, while the S&P 500 index has risen by 2.2% over this period.
