Adobe (ADBE) Hits New 52-Week High After Q2 Earnings Report

Adobe Inc (NASDAQ:ADBE) has been around for nearly three decades. It was founded in 1982 by former Xerox Corp. employees named John Warnock and Charles Geschke. The company initially focused on designing specialized printing software. Soon after its inception, Adobe launched a page-description language called PostScript, which enabled users to produce high-quality documents back then. Today, Adobe is one of the world’s biggest and most diversified software companies. It is mostly known for its media editing applications such as Photoshop and Illustrator.

The California-based computer software giant recently announced solid quarterly results for the second quarter. Adobe reported earnings of $2.32 per share for the three months ended June 4, compared to $2.27 per share in the year-ago quarter. Excluding certain items, the company reported adjusted earnings of $3.03 per share, crushing analysts’ average estimate of $2.81 per share.

Revenue for the quarter climbed 23 percent on a year-over-year basis to $3.84 billion, beating the consensus forecast of $3.73 billion. Revenue from the digital media segment jumped 25 percent to $2.79 billion, creative revenue rose 24 percent to $2.32 billion, while document cloud revenue climbed 30 percent to $469 million.

Speaking on the results, CEO Shantanu Narayen said, “Adobe had an outstanding second quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform work, learn and play in a digital-first world. Our innovative product roadmap and unparalleled leadership in creativity, digital documents and customer experience management position us for continued success in 2021 and beyond.”

Looking forward, Adobe expects adjusted earnings of $3 per share on revenue of $3.88 billion for the third quarter. The forecast is above analysts’ average estimate of $2.89 per share for earnings and $3.83 billion for revenue.