Adobe Rises After Topping Estimates, But Pulls Guidance

Adobe posted better-than-expected earnings per share for its fiscal second quarter.
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Adobe  (ADBE) - Get Report posted better-than-expected results for its fiscal second quarter but pulled its guidance for the full year following the closing bell on Thursday.

The software company said non-GAAP earnings per share hit $2.45, on revenue of $3.13 billion in the quarter. Analysts were expecting $2.32 a share on sales of $3.2 billion, based on a survey by FactSet.

Adobe shares rose $13.20, or 3.4%, to $400.87 in after-hours action.

“Adobe’s strategy to empower customers to create the world’s content, automate critical document processes and enable enterprises to engage with their customers digitally, drove record revenue in Q2,” said Shantanu Narayen, president and CEO, Adobe, in a statement. “The tectonic shift towards ‘all things digital’ across all customer segments globally will serve as a tailwind to our growth initiatives as we emerge from this crisis.”

Adobe said "In light of the macroeconomic environment and the strategic shifts for Advertising Cloud, Adobe is withdrawing the annual fiscal 2020 targets provided in December 2019."

At the time, the company had forecast full-year revenue of $13.15 billion and non-GAAP EPS of $9.75

For the upcoming quarter, Adobe forecast revenue of $3.15 billion and non-GAAP earnings per share of $2.40. Analysts had been looking for $2.46 a share, on sales of $3.3 billion, according to FactSet data.

Adobe's stock had fallen 4.7% in the regular session on a dismal day for Wall Street that saw the broader markets slump on reported increases in coronavirus cases in the U.S. and bad unemployment data, both of which suggested a longer recovery for the economy than market bulls have been expecting.