[ad_1]
Digital media and marketing software firm Adobe (ADBE) beat Wall Street’s targets for its fiscal third quarter on Tuesday night and rose slightly for the current period. But the ADBE share fell amid the protracted exchanges.
X
The San Jose, Calif., Based company earned adjusted $ 3.11 per share on sales of $ 3.94 billion in the quarter ended Sept. 3. Analysts expected Adobe to earn $ 3.01 per share on sales of $ 3.89 billion, according to FactSet. Year over year, Adobe’s profits grew 21% while sales increased 22%.
For the current quarter, Adobe expects to earn adjusted $ 3.18 per share on sales of $ 4.07 billion. Analysts were modeling Adobe earnings of $ 3.08 per share on sales of $ 4.04 billion for its fiscal fourth quarter. During the period of the previous year, Adobe earned $ 2.81 per share on sales of $ 3.42 billion.
“Adobe had another exceptional quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform storytelling, learning and doing business in a digitally driven world,” said Managing Director Shantanu Narayen in a Press release.
Adobe has three cloud computing companies. Its largest, Creative Cloud, includes software for creative professionals such as Photoshop and Illustrator. Document Cloud includes its Acrobat and e-signature offerings. Experience Cloud provides marketing software and services.
ADBE stock called a ‘crown jewel’
In after-hours trading today, ADBE’s stock fell 3.8% to nearly 621.50. During Tuesday’s regular session, ADBE stock rose 0.7% to 645.89.
On Monday, Wells Fargo Securities analyst Michael Turrin launched coverage of ADBE stocks with an overweight or buy rating. He set a target price of 770 on the ADBE share.
“We consider Adobe to be one of the crown jewels of software,” Turrin said in a note to customers. He cited the company’s strong positioning as a “de facto toolkit for creatives” and the favorable winds associated with digital experiences.
He recommends Adobe “as a long-term core investment in any large-cap technology portfolio.”
Adobe partners with PayPal for payments
On September 15, Adobe announced that it will add payment services to its e-commerce platform this year to help merchants accept credit cards and other payment methods. This move will strengthen Adobe’s rivalry with the e-commerce company Shopify (STORE).
For the service, Adobe has partnered with Pay Pal (PYPL), which will process a variety of payment types, including credit and debit cards as well as PayPal’s pay and buy now offers.
On June 11, ADBE stock exited a 40-week consolidation period at a buy point of 536.98, according to IBD MarketSmith charts. It hit a record high of 673.88 on September 3.
Follow Patrick Seitz on Twitter on @IBD_PSeitz for more articles on consumer technology, software, and semiconductor stocks.
YOU MAY ALSO LIKE:
Is the flea cycle peaking? Analysts Debate Semiconductor Stocks
Brooks Automation Sells Chip Gear Business, Ends Split Project
Best Growth Stocks to Buy and Watch: See IBD Stock Lists Updates
Find winning stocks with MarketSmith pattern recognition and custom screens
View stocks on the leader list near a point of purchase
[ad_2]
Source link