Adobe Inc. shares rose in the extended session Tuesday after the software company did what many tech companies have not this earnings season: Stick to its forecast.
Adobe ADBE, -0.18% shares advanced more than 3% in after-hours trading, following a 0.2% decline to close the regular session at $292.98.
Several tech companies, from Nvidia Corp. NVDA, +0.66% to Applied Materials Inc. AMAT, +1.10%, have been reporting sales shortfalls of about $1 billion ahead of earnings reports this season. Adobe reports much later, however, estimated around Dec. 15.
The company said it estimates “preliminary” fiscal 2023 targets of adjusted earnings of $15.15 to $15.45 a share on revenue of $19.1 billion to $19.3 billion.
Analysts surveyed by FactSet had forecast earnings of $15.52 a share on revenue of $19.85 billion.
Adobe also said it is reaffirming its fourth-quarter outlook of $3.50 a share on revenue of $4.52 billion. Analysts expect $3.50 a share on revenue of $4.53 billion.
Adobe shares have dropped more than 20% since mid-September, compared with a 4.6% decline by the S&P 500 index SPX, +1.14% over that span, after Adobe announced its $20 billion deal to acquire Figma, a design platform for collaborators, a deal that’s received little love from Wall Street.