Digital media and marketing software firm Adobe (ADBE) late Thursday topped analyst estimates for its fiscal second quarter and raised its outlook for the full year. Adobe stock surged in extended trading.
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The San Jose, Calif.-based company earned an adjusted $4.48 a share on sales of $5.31 billion in the quarter ended May 31. Analysts polled by FactSet had expected earnings of $4.39 a share on sales of $5.29 billion. In the year-earlier period, Adobe earned an adjusted $3.91 a share on sales of $4.82 billion.
In after-hours trading on the stock market today, Adobe stock jumped 14.7% to 526. During the regular session Thursday, ADBE stock dipped 0.3% to close at 458.74.
Adobe stock has been a laggard in 2024. Year to date through Thursday’s close, ADBE stock was down 23%.
Earnings report details to follow.
Adobe Stock Downgraded
On Monday, Melius Research analyst Ben Reitzes downgraded Adobe stock to hold from buy. He said Adobe stock could tread water “for a while.”
Reitzes questioned whether Adobe will be able to monetize its generative artificial-intelligence tools for creative and marketing professionals.
Adobe also faces increased competition from upstart rivals like Canva and Figma.
Adobe stock has a middling IBD Composite Rating of 51 out of 99, according to IBD Stock Checkup.
IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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