Adobe's Record Goes Unnoticed

And, Ulta Beauty’s 2024 financial outlook.

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Today is Friday, March 15, 2024.

The Early Bird Index today is 72.83.

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Adobe's Record Goes Unnoticed 

Despite posting record first-quarter revenue on Thursday, Adobe (Nasdaq: ADBE) plunged by 10.95% in after-hours trading.

Financials: Adobe reported earnings of $4.48 per share in the past quarter and revenue of $5.18 billion; both were better than expected.

Details: The company announced a new $25 billion stock buyback to help with the stock price.

Yes, But: Net new digital media annualized recurring revenue in the past quarter was $432 million, which was below estimates.

Powering the Story: Adobe only expects revenue in the current quarter to be between $5.25 billion and $5.30 billion. Investors wanted more.

Background: Before these results, Adobe was down 1.66% in 2024. The company is facing pressure from new generative AI image players (AKA OpenAI).

Final Thoughts: Can Adobe turn things around? Sure, but the company needs to do more with AI.

Notables

Notable Earnings Today: Jabil (NYSE: JBL), Townsquare Media (NYSE: TSQ), Embraer SA (NYSE: ERJ), Soho House & Co (NYSE: SHCO), Telos (Nasdaq: TLS).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Immersion (Mainvest), Needworking, Inc. (Netcapital), FitJab (Netcapital), The Sepia Coffee Project (Wefunder), The Oak Restaurant and Wine Bar (Mainvest).

Notable Economic Events Today: Export Price Index (8:30 a.m. ET, Import Price Index (8:30 a.m. ET), NY Empire State Manufacturing Index (8:30 a.m. ET), Industrial Production (9:15 a.m. ET), Michigan Consumer Sentiment (10:00 a.m. ET), Michigan Consumer Expectations (10:00 a.m. ET).

Ulta Beauty’s 2024 Financial Outlook

Ulta Beauty (Nasdaq: ULTA) had a strong holiday season, according to financial results from the company on Thursday, but the stock still fell by 7.00% in after-hours trading.

Financials: Ulta reported earnings of $8.08 per share in the past quarter and revenue of $3.6 billion; both were better than expected

Details: Looking ahead, Ulta sees new opportunities through international expansion.

Outlook: The company expects revenue for the full year to be between $11.7 billion and $11.8 billion, which is good. But it also expects earnings per share to be between $26.20 to $27.00, which is lower than expected.

Stock Price: Before these results, Ulta jumped 16% in 2024 and reached an all-time high on Thursday.

Final Thoughts: The international expansion strategy is good, but the financial outlook is a problem.

PagerDuty’s Weak Forecast

PagerDuty (NYSE: PD) posted better-than-expected financial results on Thursday, but the stock dropped by 9.42% in after-hours trading.

Outlook: The cloud computing company expects revenue to grow 7% to 9% in the current quarter, which is lower than expected.

Final Thoughts: PagerDuty is down 17% in the last 12 months as other tech stocks saw big gains.

More Boeing Problems: Cockpit Mishap Seen as Likely Cause of Plunge on Latam Boeing 787 (Wall Street Journal)

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The contents from Early Bird are for informational and entertainment purposes only and do not constitute financial or legal advice.