Shares of Adobe Systems (ADBE) fell 0.8% during extended trading Thursday, despite the software solutions provider reporting stronger-than-expected earnings for the first quarter, helped by a marked increase in revenues.
Revenues of the San Jose, California-based firm climbed 25% to $2.60 billion in the first quarter, beating analysts’ estimate of $2.54 billion.
Adjusted earnings jumped 10% year-on-year to $1.71 per share, surpassing the market consensus of $1.61 per share. On a reported basis, Q1 profit was $1.36 per share, compared to $1.17 per share recorded in the first quarter of 2017.
CEO Shantanu Narayen said, “Adobe is fueling the creative economy, driving the paper-to-digital revolution and enabling businesses to transform through our leadership in customer experience management.”
For fiscal 2019, the digital publishing and analytics firm expects adjusted earnings of about $7.80 per share on revenues of approximately $11.150 billion. For the second quarter, the company expects adjusted earnings of $1.77 per share on revenue of about $2.7 billion.
Adobe shares have gained 22% in the trailing 52 weeks, compared to 2% recorded by the S&P 500 index. During the year-to-date period, ADBE shares have increased by 18%.
Adobe has an average 12-month price target of $267, which is at a 0.7% upside from the last close.