Good morning investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season is winding down but three of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Broadcom, Oracle and Adobe

Let’s dive in.

Broadcom (AVGO)

Broadcom exceeded analysts' estimates for its second fiscal quarter earnings and announced a 10-for-1 stock split to start on July 15.

The company reported a net income of $2.12 billion, or $4.42 per share, compared to $3.48 billion, or $8.15 per share, a year earlier. Revenue reached $12.49 billion, a 43% increase from the previous year.

The rise in revenue can be attributed to Broadcom's success in the AI sector, contributing $3.1 billion in sales, and its acquisition of VMware, which bolstered sales and future forecasts. Excluding VMware, revenue grew 12% year-over-year.

Broadcom now expects about $51 billion in sales for fiscal 2024, surpassing previous estimates.

AVGO shares were +23.4% this week.

Oracle (ORCL)

Oracle's shares rose after announcing cloud deals with Google and OpenAI, despite missing fourth-quarter expectations.

Revenue increased 3% to $14.29 billion, below the expected $14.57 billion. Net income was $3.14 billion, or $1.63 per share, down from $3.32 billion, or $1.19 per share, a year ago.

Cloud services and license support generated $10.23 billion, up 9%, but slightly below estimates. Cloud infrastructure revenue grew 42% to $2.0 billion, though at a slower rate than the previous quarter.

Oracle also announced that is partnering with Microsoft and OpenAI to expand Azure AI capacity and will offer its database on Google’s cloud starting in November.

For the next quarter, Oracle anticipates earnings of $1.31 to $1.35 per share and 5% to 7% revenue growth, compared to analyst expectations of $1.32 per share and $13.39 billion in revenue.

ORCL shares were +9.7% this week.

Adobe (ADBE)

Adobe's shares surged after reporting earnings and revenue that surpassed estimates and raising its full-year guidance.

Quarterly revenue grew 10% year-over-year to $5.31 billion, matching estimates, while net income rose 21% to $1.6 billion, or $4.48 per share.

Digital Media revenue increased 11% to $3.9 billion, with Creative Cloud subscriptions contributing $487 million in net-new annualized recurring revenue, above the consensus of $437.4 million. Creative revenue also rose 10% to $3.1 billion.

Adobe's remaining performance obligations reached $17.9 billion, a 17% increase.

For the fiscal third quarter, Adobe projects adjusted earnings per share of $4.50 to $4.55 and revenue of $5.33 billion to $5.38 billion, slightly below analyst expectations.

For the fiscal year 2024, Adobe raised its forecast to $18.00-$18.20 in adjusted earnings per share and $21.40 billion-$21.50 billion in revenue, slightly higher than previous projections.

ADBE shares were +12.9% this week.

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The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.