Adobe's (NASDAQ: ADBE) stock price sank 11% during after-hours trading on March 14 in response to the cloud-based software provider's latest earnings report. For the first quarter of fiscal 2024, which ended on March 1, its revenue rose 11% year over year to $5.18 billion and exceeded analysts' expectations by $30 million. Its adjusted EPS grew 18% year over year to $4.48 and also cleared the consensus forecast by a dime.

Adobe's headline numbers looked healthy, but its guidance was uninspiring. It expects its second-quarter revenue to rise 9%-10% year over year to $5.25-$5.30 billion, which slightly missed the consensus target of $5.31 billion. It sees its adjusted EPS increasing 11-13%, which matches analysts' expectations for 12% growth.

Image source: Getty Images.

Continue reading

Source Fool.com