(Bloomberg) — Adobe Inc. projected revenue for the first fiscal quarter and full year 2022 that fell short of analysts estimates, sending shares lower in premarket trading.
Sales will reach about $4.23 billion in the current period, which ends in February, the San Jose, California-based company said in a statement Thursday. Analysts, on average, estimated $4.36 billion, according to data compiled by Bloomberg. Profit, excluding some items, could hit as high as $3.35 a share, compared with the average estimate of $3.40. For the fiscal year, Adobe expects revenue to hit $17.9 billion and earnings to reach $13.70 per share. Wall Street projected sales of $18.2 billion and profit of $14.20.
San Jose, California-based Adobe said its projections factor in the strengthening of the U.S. dollar against foreign currencies and a longer first quarter and fiscal year.
Adobe has long dominated the market in digital design software for professionals, but faces greater competition as it offers tools to make it easier for everyday users to create graphics, videos and other online content. Chief Executive Officer Shantanu Narayen also has sought to expand the company’s products for marketing and analytics.
In the three months ended Dec. 3, Adobe said revenue increased 20% to $4.11 billion. Analysts, on average, estimated $4.09 billion. Profit, excluding some items, was $3.20 a share in the period, compared with the average estimate of $3.19.
Shares fell about 6.7% in early trading in New York on Thursday.
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