Why Adobe Stock Popped on Friday
Shares of software maker Adobe (NASDAQ: ADBE) were up 3.8% in 11:15 a.m. EST trading after beating earnings last night.
Expected to earn $3.50 per share in adjusted (i.e. pro forma) profit on fiscal Q4 sales of $4.53 billion, Adobe nailed its revenue target -- and earned $3.60 per share instead.
Adobe grew its Q4 sales 10% year over year (YOY), and that growth would have been 14% but for unfavorable changes in currency exchange rates. On the other hand, Adobe's earnings news wasn't quite as great as they first appeared. While Q4 profits did exceed expectations, when calculated according to generally accepted accounting principles (GAAP), profits per share were not the $3.60 noted above (remember, that was a pro forma number) but only $2.53 per share -- and in fact down about 1.5% YOY.
Source Fool.com
