Adobe shares rise 3% on revenue, earnings beat

Adobe Inc.
ADBE,
+2.42%

shares were up 3% in after-hours trading Tuesday after the software company reported fiscal third-quarter results that bested Wall Street estimates. Adobe reported net income of $955 million, or adjusted earnings of $2.57 per share, compared with net income of $793 million, or $1.63 a share, in the year-ago quarter. Revenue rose 14% to a record $3.23 billion from $2.8 billion a year ago. Fourth-quarter guidance was also above estimates. “Normally, Q3 is a seasonally slow quarter for us, but small businesses and education fully embraced digital tools during the pandemic,” Adobe Chief Financial Officer John Murphy told MarketWatch in a phone interview after the results were announced. “This is a long-running trend.” Analysts surveyed by FactSet had expected adjusted earnings of $2.41 a share on revenue of $3.16 billion. Adobe shares are up 51% this year as it continues to feel the effects of the pandemic. The broader S&P 500 index
SPX,
+0.52%

has improved 5.3% in 2020.

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