Adobe shares drop after earnings beat
Adobe Systems Inc. shares fell more than 4% in the extended session Thursday after the company beat on the top and bottom line. Adobe shares closed up 0.8% to $258.21 during regular trading. The company reported fiscal second-quarter net income of $663.2 million, or $1.35 a share, compared with $374.4 million, or 75 cents a share, in the year-ago period. Adjusted earnings were $1.66 a share. Revenue rose to $2.2 billion from $1.77 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of $1.54 a share on revenue of $2.16 billion. For the fiscal third quarter, analysts model adjusted earnings of $1.61 a share on revenue of $2.22 billion. Adobe said it expects fiscal third-quarter adjusted earnings of $1.68 a share and sales of $2.24 billion. Adobe stock has surged 47% this year, with the S&P 500 index rising 3.8%.