Adobe forecasts fourth-quarter profit above estimates on AI strength
Reuters
Published Sep 14, 2023 05:06PM ET
(Reuters) - Photoshop software maker Adobe (NASDAQ:ADBE) forecast current-quarter profit above Wall Street estimates on Thursday, after beating revenue estimates for the third quarter on strong demand for its photo, video editing and document tools with generative AI integrations.
The company has been investing in equipping its creative software with GenAI capabilities to increase its appeal to more users. Analysts expect GenAI to boost revenue growth in 2024 and in the longer term, as it gets integrated in Adobe's products.
For the past six months, Adobe has been steadily adding new AI features to its programs, including the ability to generate images from text and the company plans to raise prices for its products starting November.
San Jose, California-based Adobe's shares fell marginally in extended trading.
Excluding items, it reported earnings of $4.09 per share in the quarter ended Sept. 1, above analysts' estimates of $3.98 per share, according to LSEG data.
Quarterly revenue stood at $4.89 billion, compared with estimates of $4.87 billion.
Adobe expects revenue between $4.98 billion and $5.03 billion for the fourth quarter, compared with analysts' expectation of $5 billion, according to LSEG data.
The company expects fourth-quarter adjusted profit between $4.10 and $4.15 per share, compared with analysts' average estimate of $4.06 per share.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.