ADOBE’s Q4 REVENUE RISES 23%, STOCK DOWN ON WEAK GUIDANCE

In the Premarket trading session on Friday, Adobe’s stock was trading at 242.70- lower by 2.2% as compared to its previous close.

In recent news, Adobe reported its earnings after the market close on Thursday. The company reported a 22.8% rise in quarterly revenue, supported by higher subscriptions for its flagship Creative Cloud suite of software that includes Photoshop.

The California-based company’s net income rose to $678.2 million, or $1.37 per share, in the fourth quarter ended 30th November, from $501.5 million, or $1 per share, a year earlier. Adobe’s total revenue rose to $2.46 billion from $2.01 billion, a year earlier. The software maker earned an adjusted $1.90 per share for its latest quarter, beating market expectations by two cents.

Adobe also raised its revenue forecast for the full year. The company sees Q1 2019 EPS of $1.60, versus the consensus of $1.88. Adobe forecasts Q1 2019 revenue of $2.54 billion, versus the market expectation of $2.52 billion.

On the technical front, the current price is below the MA5 (244.22) and MA50 (244.49). The current price is above the middle line of the Bollinger Bands but is heading downwards. The current price is above the MA20 (239.43). The stock is expected to open lower today.

Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.

 

TRADE SUGGESTION-LIMIT SELL AT 243.20 TAKE PROFIT AT 241.20 STOP LOSS AT 244.20

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