3 Stocks to Watch on Tuesday: Adobe Systems Incorporated (ADBE), ResMed Inc. (RMD) and TD Ameritrade Holding Corp. (AMTD)

ADBE CFO to retire, RMD revenue up 13.4%, AMTD earnings top estimates

U.S. stocks hit new highs yesterday as the end of the line nears for the government shutdown, with gold adding 70 cents by day’s end. The S&P 500 Index gained 0.8%, the Dow Jones Industrial Average surged 0.6% and the Nasdaq Composite was 1% higher by day’s end.

3 Stocks to Watch on Tuesday: Adobe Systems Incorporated (ADBE), ResMed Inc. (RMD) and TD Ameritrade Holding Corp. (AMTD)Several companies made headlines after the bell Monday, including Adobe Systems Incorporated (NASDAQ:ADBE), ResMed Inc. (NYSE:RMD) and TD Ameritrade Holding Corp. (NASDAQ:AMTD).

Here’s what’s going on:

Adobe Systems Incorporated (ADBE)

Adobe had posted an update regarding changes within the company’s leadership.

The company said that current CFO Mark Garrett will retire in 2018, but he will wait to step down until the company finds a suitable replacement. Garrett has had the CFO role since 2017 and he helped transform the company to a cloud-based subscription model.

Adobe also updated its quarterly earnings targets for fiscal 2018 as it expects the Tax Cuts and Jobs Act to positively impact results thanks to the reduction of the U.S. corporate income tax rate from 35% to 21%.

The company said it now projects its fiscal 2018 adjusted earnings to be $6.20 per share, ahead of the $5.50 per share it previously expected. Adobe also said revenue will be $8.725 billion.

For the current quarter, adjusted earnings are slated to be $1.43 per share, while revenue is slated to be $2.04 billion. “The new Tax Act is lowering Adobe’s effective tax rates, driving a significant increase in our earnings per share targets,” Garrett said in prepared remarks.

ADBE stock gained 2% after hours on Monday.

ResMed Inc. (RMD)

ResMed stock was skyrocketing following the company’s impressive quarter.

For the company’s second quarter, the company posted adjusted earnings of $143.83 million, or $1 per share, topping the year-ago profit of $103.26 million, or 73 cents per share.

Analysts were calling for earnings of 78 cents per share on an adjusted basis, according to data compiled by Thomson Reuters. Revenue surged 13.4% to $601.27 million, ahead of the $530.40 million from a year ago.

“We had a strong quarter with double-digit revenue and operating profit growth” said Mick Farrell, ResMed’s CEO. “Our masks have performed well around the world, device sales are solid, and our cloud-based software continues to grow rapidly. Our operating excellence initiatives are achieving leverage in the business with more runway ahead.”

During the second quarter, ResMed said it repurchased 100,000 shares at a cost of $8.5 million as part of the company’s ongoing capital management program.

RMD shares soared 10.8% after the bell.

TD Ameritrade Holding Corp. (AMTD)

TD Ameritrade had a positive quarter as well, sending shares popping late yesterday.

The brokerage firm’s earnings came in at 52 cents per share, while its non-GAAP earnings were 80 cents per share. Analysts were calling for adjusted earnings of 51 cents per share.

Revenue was also a strong point for TD Ameritrade, coming in at $1.26 billion, topping the consensus estimate of $1.2 billion, according to Zacks Investment Research.

“It was an eventful quarter as major indices hit all-time highs, the Fed raised interest rates, and a sweeping tax overhaul was approved,” Steve Boyle, executive vice president and CFO, said in a statement.

The TD Ameritrade financial chief added that the company’s first full quarter of Scottrade earnings helped to boost its growth in the GAAP and non-GAAP departments.

AMTD stock gained 2.5% after hours Monday.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/01/3-stocks-to-watch-on-tuesday-adobe-systems-incorporated-adbe-resmed-inc-rmd-and-td-ameritrade-holding-corp-amtd/.

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