The headline Adobe Posts Strong First Quarter results is a sham. The results were weak. The outlook given in the press release is weak. When folks read the details, the stock will decline. The after-hours crowd must be reading only the headlines. LOL.
I will hold onto my April 40 puts and make a profit next week.
Since they went to a subscription model, strong results don't necessarily show up in the income statement. Instead, the strength is on the balance sheet in deferred revenue and on the cash flow statement in cash flow from operations (CFO). They CRUSHED both. Here's from a sell side analyst's first glance:
Deferred revenue of $700.0M (13% q/q) compared to RBC at $533M and consensus of $593M.
Bookings of $1,088M (2% y/y) compared to RBC at $888M.
CFO was $322M compared to RBC at $293M and consensus of $277M.
That's why it's up. No manipulation, just really good numbers if you know what to look for.