U.S. equities fell Tuesday as crude oil suffered a massive 2.1% setback that put the commodity into bear-market territory. The S&P 500 Index fell 0.7%, the Dow Jones Industrial Average declined 0.3%, while the Nasdaq Composite gave back 0.8%.
Here’s what you should know heading into the trading day:
Adobe Systems Incorporated (ADBE)
ADBE stock resumed its red-hot 2017 after reporting its latest batch of quarterly earnings last night.
The maker of Photoshop and Acrobat announced that it earned 75 cents per share in its fiscal second quarter, far ahead of the 58 cents it earned last year. On an adjusted basis, profits of $1.02 per share were more than enough to beat the consensus estimate of 95 cents.
Revenues, meanwhile, jumped by 26.7% to $1.77 billion to edge out top-line expectations for $1.73 billion.
Forecasts for the fiscal third quarter were also encouraging. ADBE is calling for earnings of $1 per share on an adjusted basis, topping calls for 97 cents. Revenue projections for $1.82 billion were also ahead of the curve.
The report was filled with positive highlights. The Adobe Experience Cloud grew revenues 29% year-over-year to a record $495 million. Creative revenues grew to a record $1.01 billion.
“Adobe continues to execute well, with another quarter of record revenue and operating profit in Q2,” said Adobe CFO Mark Garrett.
ADBE stock surged 3.5% after hours on the news, extending what was already a 37% run year-to-date.
CarMax, Inc (KMX)
KMX stock is going to come out swinging at Wednesday’s open after reporting a Street-beating set of results for its first quarter.
CarMax’s profits jumped 20.7% to $211.7 million for the quarter, coming in at $1.13 per share to easily best expectations for 98 cents per share in earnings. Revenues of $4.54 billion, up 10.1% year-over-year, managed to get over estimates by about $40 million.
The company was led forward by a 14.1% jump in used vehicle sales, which included an 8.2% rise in comparable-store sales. The company’s CarMax Auto Finance segment enjoyed an 8.5% increase in income to $109.4 million, despite a slight downtick in total interest margin.
The company plans to open up 16 stores during the next 12 months.
Those results were good enough to launch KMX stock by about 8% in Wednesday’s morning trade.
Sangamo Therapeutics Inc (SGMO)
SGMO shares are getting pounded by double-digits this morning amid a disappointing public offering.
Sangamo, looking to capitalize on a roughly 170% gain in the past year or so — with a big jump in mid-May on the announcement with Pfizer Inc (NYSE:PFE) to develop one of Sangamo’s products, SB-525, a gene therapy for hemophilia A. SB-525 received the orphan treatment designation from the FDA back in the first quarter.
However, Sangamo’s public offering of common stock came to $7.25 per share across 10 million shares for a $72.5 million fund-raise. That represents a roughly 14% discount to SGMO’s closing price from Tuesday.
SGMO is bridging the gap early this morning, with the stock down 11.6% at this very moment, to exactly the $7.25 level.