Adobe beat Wall Street estimates after the close on Thursday, but investors were unimpressed.
Adobe’s second-quarter earnings of 28 cents a share beat estimates by a penny, and revenues rose 21% to $496 million, also topping forecasts.
For the third quarter, Adobe said it expects to earn 25-27 cents a share on revenues of $470-$490 million. With analysts looking for third-quarter numbers of 26 cents and $485.7 million, investors were unimpressed with the company’s guidance, sending shares of Adobe 5.8% lower after hours.
Adobe also announced a shareholder lawsuit over the company’s plans to acquire Macromedia . The company’s shares have also been hit in recent days on worries about competition from Microsoft
.
Stocks rose Thursday despite rising oil prices and a report that showed manufacturing contracting in the Philadelphia region. The Philly Fed report often leads the national ISM manufacturing report, so investors took it as a sign that the Federal Reserve may soon be forced to suspend its rate hike campaign.
The Nasdaq rose 14 to 2089, the S&P gained 4 to 1210, and the Dow climbed 12 to 10,578. Volume declined to 1.75 billion shares on the NYSE, but rose to 1.86 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 19-10 on the Nasdaq. Upside volume was 71% on the NYSE, and 72% on the Nasdaq. New highs-new lows were 244-34 on the NYSE, and 137-31 on the Nasdaq.
Integrated Circuit rose 10% on a merger offer from Integrated Device
.
Equinix jumped 17% on strong guidance and an acquisition.
Progress Software rose 7.6% on its results.
Pomeroy fell 18% on accounting errors.