Adobe Inc Soars Following its Second Quarter Earnings Call
Adobe has proven that it is a real force amongst other stocks this Friday. The company is making one of the biggest movements in the market’s after-hours and pre-market.
ADBE share prices have rallied for more than 15 points in the after-hours, which turned to 20 points by the pre-market. Investors are greatly pleased by the results that the company presented during yesterday’s earnings call after the market closed.
However, the figures from its earnings per share and revenue growth came in polar opposites. That didn’t seem to bother investors as they focused on the outstanding earnings per share results.
Adobe’s earnings per share during the second fiscal quarter reached about $2.45, showing resiliency during the pandemic-struck period. The EPS results came in significantly better than prior projections of about $2.32.
This balanced the negativity from the revenue growth of about $3.13 billion, which failed to reach the estimates of $3.16 billion.
The stock market has seen several good movements this Friday, but ABDE was one of the largest.
According to the company, it delivered excellence and record figures in its sales during the pandemic. The software developer also added that it expanded its profitability to counter its losses.
The main factor that supported the California-based technology giant is the demand surge for mobile workspaces. The use of digital documents has increased as millions of workers and students shift to working from home.
Adobe Chief Executive Officer Shantanu Narayan referred to it as a tectonic shift in the digital world.
And during yesterday’s earnings, Adobe adjusted its estimates for the third fiscal quarter even higher. This further helped its shares to rally during the after-hours and pre-market in stock trading sessions.
Other companies that had big movements in the stock market are Lululemon Athletica, Apple, Boeing, and Broadcom. LULU, AAPL, BA, and AVGO were moving through after-hours and pre-market sessions.
The smartphone giant from Silicon Valley, Apple, made its move after HSBC adjusted its outlook for the company’s segment. The iPhone maker has also released its lineup for the biggest WWDC to date.
On the other hand, unlike Adobe, Lululemon Athletica sank following its earnings report. Share prices were initially falling by 15 points during after-hours sessions.
LULU investors were clearly disappointed by the company’s dramatic letdown in its EPS and revenue estimates. The lockdown brought by the pandemic definitely affected the sales of the Canadian spot’s apparel business.
Although the Chief Executive Officer tried to counter the negativity by assuring its investors that the company is adjusting to the “new normal.”, more than half of Lululemon’s first-quarter revenue was in online sales.
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