Adobe (ADBE) revenue jumps 22%, FedEx (FDX) net income falls

Highlights

  • The revenue of Adobe Inc. (NASDAQ: ADBE) surged 22% YoY in Q3, FY21.
  • ADBE expects its revenue to be around US$4.07 Bn in Q4, FY21.
  • The GAAP revenue of FedEx Corporation (NYSE: FDX) was US$22.0 Bn in Q1, FY22.

Stocks of Adobe Inc. (NASDAQ: ADBE) and FedEx Corporation (NYSE: FDX) fell on Tuesday after reporting their quarterly earnings.

The ADBE stock fell 2.84 percent to US$623.10 at 4:14 pm ET, while FDX traded at US$245.50 at 4:14 pm ET, down 2.11 percent.

Here we explore the earnings of the two companies.

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Adobe Inc. (NASDAQ: ADBE)

Adobe Inc. is a San Jose, California-based technology company that offers a range of software for its customers.

The company reported record revenue of US$3.93 billion in Q3, FY21, an increase of 22 percent YoY. Its gross profit was US$3.46 billion, compared to US$2.79 billion in the year-ago quarter.

The operating income was US$1.44 billion compared to US$1.06 billion in Q3, FY20. Its net income came in at US$1.21 billion, or US$2.52 per diluted share, against a net income of US$955 million, or US$1.97 per diluted share, in the same quarter of the previous year.

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The company expects its total revenue to be around US$4.07 billion in Q4, FY21, with GAAP earnings of about US$2.52 per share.

Its market cap is US$307.70 billion, with a P/E ratio and forward P/E one-year ratio of 55.97 and 62.38, respectively. Its EPS is US$11.54. The stock rose 32.13 percent YTD.

The company’s 52-week highest and lowest stock prices were US$673.88 and US$420.78, respectively. Its trading volume on September 20 was 2,637,412.

Adobe Inc. (ADBE) and FedEx (FDX) report quarterly earnings

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FedEx Corporation (NYSE: FDX)

FedEx is a leading transportation and e-commerce company with global operations. The Memphis, Tennessee-based firm provides package delivery and freight services.

On a GAAP basis, the company's revenue came in at US$22.0 billion in Q1, FY22, compared to US$19.3 billion in the year-ago quarter. Its operating income was US$1.40 billion, compared to US$1.59 billion in Q1, FY21.

On a GAAP basis, the company reported a net income of US$1.11 billion, or US$4.09 per diluted share, compared to a net income of US$1.25 billion, or US$4.72 per diluted share, in the same quarter of the previous year.

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The company has lowered its full-year earnings forecast for FY 2022 to between US$18.25 and US$19.50 per diluted share from its prior projection of US$18.90 to US$19.90 per diluted share.

The market cap of FDX is US$67.09 billion. The stock declined by 0.94 percent YTD. Its EPS is US$19.45, the P/E ratio is 12.96, and the forward P/E one year is 11.79.

The 52-week highest and lowest stock prices were US$319.90 and US$230.27, respectively. The trading volume was 3,474,544 on September 20.

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Bottomline


The technology and industrial sectors registered growth over the past year. Analysts expect the momentum to continue as the economy improves after the covid downturn. The technology sector rose 16.83 percent YTD, while the industrial sector jumped 11.60 percent this year. However, investors should evaluate the companies carefully before investing in stocks.

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