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Three notable stocks making moves in today’s market are Adobe Inc. (Nasdaq: ADBE), Hasbro Inc. (Nasdaq: HAS), and Onsemi (Nasdaq: ON).

Adobe shares surged over 16% in extended trading after reporting strong Q2 FY2024 results and raising full-year guidance. Hasbro received an upgrade from Bank of America, with analysts citing accelerating digital growth and a recovering physical play business.

On the other hand, Onsemi announced plans to cut about 1,000 employees globally to streamline operations and reduce costs amid industry challenges, which negatively affected the stock price.

Adobe Stock Surges on Strong Q2 Results and Raised Guidance

Adobe Inc. shares, trading at $524.44 at the time of writing, up $65.70 (+14.32%), surged over 16% in extended trading on Wednesday after the software giant reported strong fiscal second-quarter 2024 results, beating expectations on both revenue and earnings per share.

The company’s revenue grew 10% year-over-year to $5.31 billion, driven by robust demand for its creative software tools. Adobe also raised its full-year 2024 guidance for adjusted EPS and revenue, reflecting confidence in maintaining growth.

The company’s strong performance has been attributed to successfully incorporating AI tools, such as image generation in Photoshop, which has driven upgrades and adoption. Adobe’s Digital Media segment performed particularly well, with net-new annualized recurring revenue and total revenue exceeding estimates.

Analysts view Adobe as well-positioned among large-cap software companies. The company’s market cap stands at $205.58B, with a PE ratio (TTM) of 41.30 and EPS (TTM) of $11.11.

Hasbro Gets Analyst Upgrade on New Game

Bank of America upgraded Hasbro Inc., currently trading at $60.84, up $2.82 (+4.86%), to Buy and raised the price target from $70 to $80, citing accelerating digital growth and a recovering physical play business as key factors.

Analysts expect the new game Monopoly Go! to significantly boost profitability, contributing $36 million in quarterly operating profit in the second half of 2024. They also see positive signs in the consumer products division, with healthy toy industry inventory levels and positive April sell-through.

The analysts anticipate improvement in the second half of 2024, driven by new product launches, and predict continued momentum into 2025 from Monopoly Go! royalties, a potential return to growth in consumer products, and a favorable theatrical content slate.

The $80 price target represents a premium valuation to peers, reflecting the belief in Hasbro’s higher margin and EPS growth potential. Hasbro’s market cap is $8.47B, with an EPS (TTM) of -$10.15.

Onsemi Announces Layoffs Amid Industry Challenges

Onsemi, currently trading at $72.18, down $2.86 (-3.80%), announced plans to cut about 1,000 employees globally to streamline operations and reduce costs.

The company is facing challenges from weak EV market demand and excess customer inventory. In addition to the layoffs, Onsemi will consolidate 9 sites and relocate 300 employees over 2025. The company expects to incur $65-80 million in charges during 2024-2025, mostly in 2024, for severance, benefits, and taxes.

Despite the layoffs, Onsemi plans to reinvest the savings into its remaining workforce and business opportunities.

Deutsche Bank analysts view the moves as consistent with investing in targeted growth while optimizing manufacturing and operating expense efficiency.

Wells Fargo sees the actions reflecting long-term plans to outsource manufacturing and drive higher fab utilization. Onsemi’s market cap stands at $31.05B, with a PE ratio (TTM) of 15.31 and EPS (TTM) of $4.90.

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