Adobe misses Q2 revenue, withdraws guidance

For its second quarter, Adobe reported an adjusted $2.45 per share compared to the Street’s expected $2.34 per share. Adobe also reported an estimated $3.13 billion in revenue, just below the expected $3.16 billion. Yahoo Finance’s Myles Udland breaks down the software company's Q2 results on The Final Round.

Video Transcript

SEANA SMITH: Welcome back to "The Final Round." We have-- the earnings keep rolling in. Adobe is out with the results. Shares topping just around 4% after hours. Myles has the details for us. Myles.

MYLES UDLAND: Yeah, Seana, it seems like the Street likes a better-than-expected bottom line here from Adobe. The company reporting adjusted earnings per share of $2.45. The Street was looking for $2.34.

Now, a little bit light on the top line, $3.13 billion in revenue during its most recent quarter. The Street was looking for closer to 3.16.

In the third quarter, Adobe also guiding slightly light of estimates. $3.15 billion in revenue is expected. So just a slight sequential improvement. The Street was looking for closer to $3.27 billion.

Earnings per share in the current quarter expected to be $2.40. $2.46 is what the Street had been looking for.

But the stock here up about 4.3% in the after hours, roughly getting back most of its losses from today's session. The stock was down nearly 5%.

Now just a few days ago Adobe shares closed or traded up to a new record high right around $410 a share. $404 in the after hours, getting back towards those levels. And Adobe has been a name that's held up quite well during the rally, and it has certainly been part of that SaaS trade that we've seen met with so much enthusiasm over the last couple of months. Seana.

SEANA SMITH: It certainly is. Again, shares moving the upside, up just around 4%.