Adobe’s profit rose, helped by an increase in subscriptions, as customers pay for the company’s software monthly, instead of buying it outright. But the software maker it’s forecasting lower than expected second quarter sales and profits. Shares fell initially in after hours trading. Before the close the stock was almost two percent higher to $79.66.
Shares of MGM Resorts surged on this down day, as an activist made an investor presentation advocating the company convert into a real estate investment trust or a REIT. The firm said MGM could unlock shareholder value and it wants to nominate members for the company’s board. The stock rose 10.5 percent to $21.74.
DSW beat the street’s estimates on both the top and bottom lines. The shoe retailer also saw same-store sales rise. It will hike its dividend to 20 cents a share. Now its dividend yield is around two percent. The stock rose four percent to $38.33.
Burlington Stores was another retailer that impressed investors with strong results today. Earnings jumped nearly 50 percent in the January quarter on a rise in sales during the holidays. The company did tone down its earnings and revenue outlook for the full year. Still, shares were two percent higher to $58.59.
Macerich & Simon Property Group
Macerich has rejected a takeover offer from Simon Property Group. The mall operator saying the bid worth about $14 billion “substantially undervalues” the company. Macerich also adopted a shareholder rights plan that stops an investor from buying more than ten percent of the company, to protect itself from a hostile takeover. Shares of both mall operators closed lower.