Tech company Adobe (NASDAQ:ADBE) released its latest earnings numbers last week. The company’s sales of $4.53 billion for the period ending Dec. 2 came in just as analysts expected. But on the bottom line, the company’s adjusted per-share earnings of $3.60 beat expectations of $3.50.
Overall, the company’s sales rose by 10% from the prior-year period. Adobe’s growth rate has been falling as a year ago, the company’s top line increased at a rate 20%.
Although it has been a sharp decline for the business, the positive is that Adobe is still building off of the prior-year results. And for next quarter, the company continues to expect to see more growth with an adjusted EPS between $3.65 and $3.70, and revenue could come in as high as $4.64 billion.
Adobe’s stock was up on the news and in recent months it has been rallying after hitting a new 52-week low. Year to date, shares of Adobe have fallen 40%, which is worse than the Nasdaq Composite, which is down 32% over the same stretch.
The company’s software products are popular options with remote workers and are crucial for many who work in photo design. But concerns about a slowing economy could make it difficult for the business to generate significant growth with companies looking to keep costs down. But once the economic outlook improves, there could be stronger growth numbers ahead for Adobe.
And with the decline in value, Adobe’s arguably a better buy right now, trading at a multiple of 22 times its future earnings, which isn’t far from the S&P 500 average of 18.