Adobe’s stock slid 9% on Friday after the company reported a lower forecast for its upcoming quarter than expected, bringing the software firm’s shares down into the negative for the year despite beating estimates for earnings and revenue.
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Shares of Adobe fell to just over $532.30 as of around 10:30 a.m., pacing the company’s worst loss since March 14, when shares decreased by over 13% after coming up short on revenue estimates for its second quarter.
As of Friday’s share price, Adobe’s stock is now down more than 8% on the year.
Adobe said Thursday it expects earnings per share between $4.63 and $4.68 on revenue between $5.5 billion and $5.55 billion for its fourth quarter, lower than analyst estimates of $4.67 per share and $5.61 billion, according to FactSet.
Despite lowering its guidance, Adobe reported $5.41 billion in revenue and adjusted earnings per share of $4.65, beating estimates of $5.37 billion and $4.53 billion.
Adobe also recorded $5.18 billion in revenue through its subscription services, an increase of 11% over the same period the previous year.
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Nearly $23 billion. That’s how much was erased from Adobe’s market capitalization as the company’s shares dipped in value, decreasing from $260 billion to $237.1 billion.
Adobe has outperformed analyst estimates through its first three quarters this year, though its stock has suffered from lowered guidance as Adobe underestimates its revenue growth. Jake Roberge, an analyst at the investment firm William Blair, said in a note on Friday there is positivity for the “long-term trajectory” of Adobe’s business as the company has “[capitalized]