After-Hours Action: Why Adobe Stock Is Sliding

Adobe Inc ADBE shares are trading lower in Thursday's after-hours session after the company announced financial results and issued guidance below analyst estimates.

Adobe said fiscal second-quarter revenue increased 14% year-over-year to $4.39 billion, which beat the estimate of $4.34 billion, according to data from Benzinga Pro. The company said its better-than-expected revenue results were driven by strong demand across Creative Cloud, Document Cloud and Experience Cloud.

Adobe reported quarterly adjusted earnings of $3.35 per share, which beat the estimate of $3.31 per share. 

"Our operating model continues to fuel consistent growth, enabling the company to invest in category-leading cloud solutions and emerging innovations that are gaining traction in the marketplace," said Dan Durn, executive VP and CFO of Adobe.

Adobe said it expects fiscal third-quarter revenue to be approximately $4.43 billion versus the estimate of $4.51 billion. The company expects fiscal third-quarter adjusted earnings to be approximately $3.33 per share.

Adobe provides content creation, document management and digital marketing and advertising software and services to creative professionals and marketers.

See Also: 'That Made Me Look Closer': Why This Adobe Investor Was Cautious Ahead Of Q2 Earnings

ADBE Price Action: Adobe shares are making new 52-week lows on Thursday.

The stock was down 3.71% in after hours at $351.52 at press time.

Photo: Hitesh Choudhary from Pixabay.

Posted In: Dan Durnwhy it's movingEarningsNewsMoversTrading Ideas

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