Adobe Inc. (ADBE) shares rose more than 4% during Wednesday's session after the company reported better-than-expected second quarter financial results.

Revenue rose 24.5% to $2.74 billion, beating consensus estimates by $40 million, and GAAP net income reached $1.29 per share, beating consensus estimates by four cents per share. Looking ahead, the company expects third quarter revenue to come in at $2.8 billion, missing the consensus estimate of $2.83 billion, with earnings per share (EPS) of $1.95, missing the consensus estimate of $2.05.

Analysts expressed optimism following the second quarter financial results despite the slower-than-expected third quarter outlook. Stephens analyst James Rutherford was one of the most optimistic analysts, upgrading Adobe stock to Outperform and raising his price target to $327.00. He believes that strong Digital Media results will help reduce investor concerns over a near-term slowdown, adding that the acquisition of Marketo and Magento could drive future growth.

JPM Securities analyst Patrick Walravens was a bit more pessimistic following the second quarter financial results, saying that he expects growth to slow over the next few quarters. Despite these concerns, the analyst maintained his Market Perform rating on Adobe shares and still views the stock as fairly valued at current levels.

Chart showing the share price performance of Adobe Inc. (ADBE)

From a technical standpoint, the stock broke out from trendline resistance to retest its 52-week highs made in late April and early May. The relative strength index (RSI) climbed to 63.09 but remains below overbought levels, while the moving average convergence divergence (MACD) could see a near-term bullish crossover. These indicators suggest that the stock could have more room to run following the results.

Traders should watch for a breakout from its prior highs to fresh 52-week highs over the coming sessions. If the stock fails to break out, traders could see some consolidation above trendline support at around $285.00 before a renewed attempt higher. A breakdown from $285.00, however, could lead to a move lower to retest the 50-day moving average at $276.20.

The author holds no position in the stock(s) mentioned except through passively managed index funds.