Software provider Adobe Inc. (ADBE) - Get Adobe Inc. Report posted better-than-expected financial results for its fiscal first quarter after the bell Thursday, but warned the coronavirus pandemic will have an impact on booking decisions, consulting services, and marketing spending by its customers.
Adobe posted revenue of $3.09 billion for the quarter and non-GAAP diluted earnings of $2.27 a share.
Analysts had expected the company to post revenue of $3 billion and earnings of $2.23 a share, based on a FactSet survey of 25 analysts.
In the same period a year ago the company posted earnings of $1.71 a share on sales of $2.6 billion. It reported net income of $678.2 million.
for the current quarter, Adobe forecast revenue of $3.175 billion and non-GAAP earnings of $2.35 a share.
The company said it had factored in "the expected impact of the global uncertainty caused by the COVID-19 situation based on the latest data and information available."
Adobe said the effects of the coronavirus will impact:
- Enterprises deferring bookings decisions, delaying consulting services implementations and reducing marketing spend;
- Consumers reducing spending in countries more adversely impacted by the COVID-19 situation; and
- Software license revenue driven by channel partners.
"Our recurring revenue model and the real-time visibility we have into our business uniquely positions Adobe to manage through an uncertain environment," said John Murphy, executive vice president and CFO of Adobe in the statement.
Shares of Adobe fell 95 cents, or 0.33%, to $284.05 in after-hours trading. The stock lost $30.23, or 9.6%, to $285 during the regular session.
U.S. stocks saw historic falls Thursday, with the Dow losing 10%, as fears over the impact of the coronavirus on the global economy spread following President Donald Trump's abrupt decision Wednesday evening to bar travel from parts of Europe to combat the "foreign virus."