Adobe Earnings: ADBE Stock Soars 4% Higher On Q2 EPS Beat

Adobe (NASDAQ:ADBE) earnings for the software company’s fiscal second quarter of 2020 have ADBE stock taking off in after-hours trading Thursday. That comes after reporting adjusted earnings per share of $2.45. This is better than Wall Street’s estimate of $2.33 per share. However, its revenue of $3.13 billion is below analysts’ estimates of $3.16 billion.

Adobe Earnings: ADBE Stock Soars 4% Higher On Q2 EPS Beat
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Here’s what else is worth pointing out from the most recent Adobe earnings report.

  • Adjusted per-share earnings are up 33.9% from $1.83 during the fiscal second quarter of 2020.
  • Revenue for the quarter comes in 14% higher than the $2.74 billion from the same time last year.
  • Operating income of $1.02 billion is a 36% increase year-over-year from $750 million.
  • The Adobe earnings report also has net income coming in at $1.1 billion.
  • That’s a 73.8% jump from the company’s net income of $633 million in the same period of the year prior.

John Murphy, executive vice president and CFO of Adobe, said this about the earnings.

“Adobe delivered another quarter of record revenue and expanding profitability despite the challenging environment, demonstrating the resiliency of our business model. We drove record Digital Media net new ARR for Q2, highlighting how mission-critical creative and document solutions are in engaging remotely.”

Adobe also includes guidance for fiscal Q3 2020 in its earnings report. It expects adjusted EPS of roughly $2.40 on revenue of about $3.15 billion. For comparison, Wall Street is looking for adjusted EPS of $2.46 on revenue of $3.28 billion in for the quarter.

ADBE stock was up 4.3% after markets closed on Thursday.

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


Article printed from InvestorPlace Media, https://investorplace.com/2020/06/adobe-earnings-bump-adbe-stock-up/.

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