Markets Jump Again, But Adobe, Poshmark Weigh in After Hours Tuesday

The stock market never ceases to amaze many investors in its ability to move higher even in the midst of considerable risk. Bond yields continued to move sharply higher, reflecting the growing belief that the Federal Reserve will be even more aggressive than anticipated in fighting inflation. Yet that didn’t hurt stocks at all, with the S&P 500 ( ^GSPC 1.13% ), Dow Jones Industrial Average ( ^DJI 0.74% ), and Nasdaq Composite ( ^IXIC 0.00% ) all moving higher.

Data source: Yahoo! Finance.

Earnings season won’t start for another couple of weeks, but there are still some stragglers reporting their results, and investors are watching them closely. Both Adobe ( ADBE 2.83% ) and Poshmark ( POSH 10.29% ) gave their latest financial reports late Tuesday, and below, we’ll take a closer look at what each of them said.

Image source: Getty Images.

Adobe’s sales reach new heights

Shares of Adobe eased lower by about 2% in after-hours trading on Tuesday, giving back part of its 3% gain in the regular trading session. Despite the negative reaction from shareholders, the creative software-as-a-service (SaaS) provider reported record revenue and showed that its long-term strategic vision is still on track.

Fiscal first-quarter results from Adobe revealed considerable ongoing growth. Total sales came in at $4.26 billion, hitting a new high and rising 9% from year-earlier levels. That was especially noteworthy because the first quarter of the previous fiscal year had one extra week in it, and so Adobe’s true rise was closer to 17%. Adjusted earnings were $3.37 per share.

Adobe got good performance from all of its segments. Digital media makes up the biggest part of the business, and it enjoyed 9% growth year over year. Most notably within that segment, revenue from its Document Cloud business jumped 17%. Annualized recurring revenue for the digital media segment climbed to $12.57 billion. Meanwhile, the digital experience segment’s revenue rose 13%, continuing to outpace its larger counterpart.

Adobe expects growth rates to remain healthy, projecting total revenue of $4.34 billion for the fiscal second quarter, segment gains of 13% for digital media, and 15% for digital experience. Even with the stock giving up ground, long-term investors can see Adobe’s results as good news.

Poshmark gives back its gains

Investors seemed excited about Poshmark early in the day, with the stock closing the regular session up 10%. After it reported its latest results, though, the stock fell almost 9% to give back nearly all of its earlier gains.

On its face, Poshmark’s fourth-quarter results indicated continuing growth. Net revenue of $84.2 million was up 22% from year-earlier levels. Gross merchandise value over the new and secondhand style specialist’s platform grew 27% to nearly $491 million. Poshmark counted 7.6 million active buyers for the past 12 months, hitting a new record.

However, Poshmark still hasn’t been able to make money consistently. The company posted a net loss of $0.19 per share for the quarter, bringing its full-year losses to $1.35 per share and reversing 2020’s modest profits.

Moreover, Poshmark shareholders seemed unimpressed with the company’s first-quarter guidance. Poshmark sees itself bringing in about $86 million to $88 million in revenue for the period, which would represent growth of just 6% to 9% compared to the previous year’s quarter. Things need to turn around quickly if Poshmark wants to start making up for the significant share-price losses it has seen in the past year.