Digital media and marketing software firm Adobe (ADBE) late Thursday easily beat Wall Street’s estimates for its fiscal second quarter. But it offered mixed guidance for the current period. Still, ADBE stock rose in extended trading.
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The San Jose, Calif.-based company earned an adjusted $3.91 a share on sales of $4.82 billion in the quarter ended June 2. Analysts polled by FactSet had expected Adobe to earn $3.79 a share on sales of $4.77 billion. On a year-over-year basis, Adobe earnings jumped 17% while sales climbed 10%.
For the current quarter, Adobe forecast adjusted earnings of $3.98 a share on sales of $4.85 billion. That’s based on the midpoint of its guidance. Wall Street was modeling earnings of $3.89 a share on sales of $4.86 billion for the fiscal third quarter.
Its guidance for the full year implied fiscal fourth-quarter adjusted earnings of $4.01 a share on sales of $4.98 billion. Analysts had been looking for earnings of $4.05 a share on sales of $5 billion.
ADBE Stock Is A Recent Breakout
In after-hours trading on the stock market today, ADBE stock advanced 3.9% to 510.20. During the regular session Thursday, ADBE stock rose 2.4% to close at 490.91.
On June 9, ADBE stock broke out of a cup base at a buy point of 451.15, according to IBD MarketSmith charts. The move happened after Adobe announced new enterprise applications for its Firefly software for generative artificial intelligence.
“Adobe achieved record Q2 revenue demonstrating strong demand across Creative Cloud, Document Cloud and Experience Cloud,” Chief Executive Shantanu Narayen said in a news release.
He added, “Adobe’s groundbreaking innovation positions us to lead the new era of generative AI given our rich data sets, foundation models and ubiquitous product interfaces.”
Adobe Ranks First In Industry Group
Adobe has three cloud computing businesses. Its largest, Creative Cloud, includes software for creative professionals such as Photoshop and Illustrator. Document Cloud includes its Acrobat and e-signature offerings. Experience Cloud provides marketing software and…
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