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Adobe Rises on Strong Earnings, Guidance

Adobe reported a 23% year-over-year jump in overall revenue for the fiscal second quarter, and issued guidance for the current quarter, ahead of analyst estimates.
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Shares of Adobe  (ADBE) - Get Report rose Thursday after the company reported fiscal second- quarter results, as well as guidance for the current quarter, that topped analyst estimates.

The San Jose, Calif. company reported earnings of $3.03 per share on revenue of $3.84 billion that rose 23% year-over-year. Analysts were expecting Adobe to report earnings of $2.81 per share on revenue of $3.73 billion. 

"Adobe delivered strong Digital Media annualized recurring revenue and Digital Experience bookings, as well as record cash flows from operations in Q2," said John Murphy, Adobe's executive vice president and CFO. 

Adobe shares were rising 2.7% to $566 in after hours trading Thursday. 

For the fiscal third quarter, the company expects revenue of $3.88 billion and earnings of $3 per share. Analysts are expecting revenue of $3.83 billion and earnings of $2.89 per share. 

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"The large market opportunity and momentum we are seeing across our creative, document and customer experience management businesses position us well to deliver another record year," said Murphy. 

In April, FedEx  (FDX) - Get Report and Adobe announced a multi-year collaboration that kicks off with the integration of ShopRunner, an e-commerce platform subsidiary of FedEx Services, with Adobe Commerce.

The integration will give Adobe merchants access to FedEx post-purchase logistics intelligence, the companies said in a statement, "which will help them drive demand, reduce cost and gain customer insights."

The company also recently announced a partnership with BJ's Wholesale Club  (BJ) - Get Report to help the warehouse club grow its membership base and strengthen retention

The Westborough, Mass., chain will adopt the San Jose, Calif., software maker's Adobe Experience Platform at BJ's locations in the Eastern U.S.