ADOBE EPS BEATS ESTIMATES STOCK SINKS ON GUIDANCE
Adobe’s stock is currently trading at 275.60-lower by 3.20% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 2.74%. The stock has continued falling after the opening bell.
The company reported its third-quarter earnings after the market close on Tuesday. Adobe generated an EPS (excluding certain items) of $2.05 for the quarter ended August 30. The EPS was above the market expectation of $1.97. The company brought in $2.83 billion in revenue for the third quarter. The revenue was above the consensus estimates of $2.82 billion.
The California based company sees Q4 2019 EPS (excluding certain items) of $2.25, versus the consensus of $2.30. Adobe forecasts Q4 2019 revenue of $2.97 billion, versus the market expectation of $3.03 billion.
On the technical front, the current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards. The RSI is currently at 40.23% and suggests that the market can move in the downward direction.
TRADE SUGGESTION-LIMIT SELL AT 275.95 TAKE PROFIT AT 274.15 STOP LOSS AT 276.85