Digital media and marketing software firm Adobe (ADBE) surpassed Wall Street's expectations for its fiscal fourth quarter, reporting strong earnings and revenue growth. However, the company's outlook for the upcoming quarter fell short of analyst predictions, leading to a decline in ADBE stock during after-hours trading.

In the quarter ended December 1, Adobe recorded adjusted earnings of $4.27 per share, exceeding FactSet's estimated earnings of $4.13 per share. Additionally, the company reported sales of $5.05 billion, surpassing the expected $5.01 billion. Compared to the previous year, Adobe's earnings saw a 19% increase, while sales rose by 12%.

Despite these positive results, Adobe's forecast for the current quarter disappointed investors. The company expects adjusted earnings of $4.38 per share, based on the midpoint of its guidance, on sales of $5.13 billion. This projection signifies a 15% growth in earnings and a 10% growth in sales compared to the same period last year. However, Wall Street analysts had predicted earnings of $4.26 per share on sales of $5.16 billion.

Looking ahead to its full fiscal year 2024, Adobe anticipates adjusted earnings of $17.80 per share, representing an 11% increase, on sales of $21.4 billion, indicating a 10% rise. Analysts' expectations were slightly higher, with estimated earnings of $18 per share on sales of $21.73 billion.

Following the announcement, ADBE stock experienced a decline of 6.2% during after-hours trading, reaching a value of $585.35. Prior to the earnings release, the stock had already declined by 1.5% during the regular trading session, closing at $624.26.

One concern weighing on Adobe's stock performance is the pending acquisition of Figma. The potential $20 billion deal is currently undergoing government regulatory reviews, which could hinder its completion.

ADBE stock is currently listed on Investor's Business Daily's Big Cap 20 and Tech Leaders stock lists, highlighting its significance within the tech sector.

While Adobe's fiscal fourth quarter delivered positive financial results, the disappointing outlook for the coming quarter overshadowed the company's achievements, resulting in a decline in ADBE stock. Investors will closely monitor the progress of the Figma acquisition and future updates from Adobe to assess its growth trajectory in the highly competitive digital media and marketing software industry.