Shares of creative software provider Adobe (NASDAQ:ADBE) surged 14% in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2024. Adjusted earnings per share came in at $4.48, which beat analysts’ consensus estimate of $4.39 per share.
Sales increased by 10% year-over-year, with revenue hitting $5.31 billion. This beat analysts’ expectations of $5.291 billion.
Looking forward, management now expects revenue and adjusted earnings per share for Q3 2024 to be in the ranges of $5.33 billion to $5.38 billion and $4.50 to $4.55, respectively. For reference, analysts were expecting $5.402 billion in revenue along with an adjusted EPS of $4.47.
Investor Sentiment for ADBE Stock Is Currently Positive
The sentiment among TipRanks investors is currently Positive. Out of the 739,700 portfolios tracked by TipRanks, 1.8% hold ADBE stock. In addition, the average portfolio weighting allocated towards ADBE among those who do have a position is 4.61%. This suggests that investors of the company are fairly confident about its future.
Furthermore, in the last 30 days, 2.4% of those holding the stock decreased their positions. As a result, the stock’s sentiment is above the sector average, as demonstrated in the following image:
Is Adobe a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 22 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 23% year-to-date decline, the average ADBE price target of $605.90 per share implies 32.28% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
