Adobe Systems Crushes First-Quarter Views, Shares Rise Late
Digital media and marketing software firm Adobe Systems (ADBE) late Thursday crushed Wall Street’s estimates for its fiscal first quarter and guided higher for the current quarter, sending its stock up in extended trading.
Adobe earned an adjusted $ 1.55 a share, up 65% year over year, on sales of $ 2.08 billion, up 24%, in its fiscal first quarter ended March 2. Analysts expected Adobe to earn an adjusted $ 1.44 a share on sales of $ 2.05 billion in the period ended March 2.
For the current quarter, Adobe expects to earn an adjusted $ 1.53 a share, up 50% year over year, on sales of $ 2.15 billion, up 21%. Wall Street was modeling $ 1.51 in adjusted earnings per share on $ 2.14 billion in sales for Adobe’s fiscal second quarter.
Adobe shares rose more than 3% in after-hours trading on the stock market today. During the regular session, Adobe rose 0.2% to 218.87.
Adobe stock hit a record high of 224.90 on Tuesday, and currently ranks No. 32 on the IBD 50 list of top-performing growth stocks.
Adobe exited the quarter with annualized recurring revenue of $ 5.72 billion in its digital media business, up $ 336 million from the prior quarter. The company’s digital media business includes its Creative Cloud suite of software for photographers, graphic artists, web designers and other creative professionals.
Adobe’s Digital Experience segment, which includes its marketing software and services, saw revenue rise 16% year over year to $ 554 million in the first quarter.
“When we talk about empowering people to create and helping businesses transform, digital is changing those fields dramatically,” Adobe Chief Executive Shantanu Narayen told Investor’s Business Daily. “Those are large, growing opportunities and we’re the market leader.”
He added, “This about the golden age of creativity and how Adobe is enabling anybody who has a story to tell to tell it.”
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