(AOF) – Adobe stock falls 6.05% to $585.45 and brings up the rear of the S&P 500 index. Not only is the United States Federal Trade Commission investigating its subscription cancellation practices , but the publisher of publishing and marketing software presented disappointing annual forecasts. Reacting to this publication, JPMorgan and UBS confirmed their Neutral recommendation on the stock. The Swiss bank judges that the stock is not cheap.
Adobe forecasts fiscal 2024 revenues of $21.30 billion to $21.50 billion, compared to forecasts of $21.73 billion.
It anticipates $1.9 billion in new annualized recurring revenue for its digital media arm, compared to a consensus of $2 billion.
Earnings per share are expected between $17.60 and $18, compared to a consensus of $18.
The San Jose, Calif.-based company reported adjusted earnings of $4.27 per share for the fourth quarter, ended in early December, compared with estimates of $4.14. Over the period, the group recorded adjusted operating profit up 15.8% to $2.34 billion for revenues up 12% to $5.05 billion.
In addition, Adobe revealed that the United States Federal Trade Commission has been investigating its subscription cancellation practices for more than a year. The settlement of this matter “could result in significant monetary costs or penalties and have a significant impact on our financial results and operations,” warned the technology firm.
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