Earnings Alert: Adobe Systems Incorporated (NASDAQ:ADBE)

Shares of Adobe Systems Inc. shot up to a record high Friday, as Wall Street analysts rushed to raise price targets in the wake of the software company’s better-than-expected quarterly results.

Shares of Adobe Systems (NASDAQ:ADBE) traded up 3.81% during midday trading on Friday, reaching $127.01.

Analysts had ben modeling $1.645 billion in revenue and 87 cents per share in earnings. Total debt to equity ratio of the company for most recent quarter is 0.00 while Long term debt to equity ratio for same time period is 0.26.

TSLA is up 0.6% this morning at $263.77, following news the company raised roughly $1.2 billion – 20% more than expected – via a stock offering and sale of convertible senior notes.

Marketing and creative cloud software provider Adobe Systems Inc. reported increased profits in its first quarter thanks to rising recurring revenues from its Creative Cloud suite.

The California-based company said that it earned $398.45 million, or 80 cents a share in the latest quarter, as compared to $254.31 million, or 50 cents a share, in the year-earlier quarter.

“In the area where ADBE is dominant, and we expect it to outperform (Creative Cloud), the company continues to deliver solid results”. Digital Cloud Marketing revenue also grew by 23.4% year over year, with marketing cloud ARR reporting 26.5% growth. The company had revenue of $1681.60 million for the quarter, compared to analysts expectations of $1645.96 million.

Total revenue increased, for the twelfth straight quarter, to $1.68 billion from $1.38 billion. Adobe Sign now includes mobile tools, powered by Adobe Sensei, for scanning, reading, routing and signing documents.

Adobe Systems’s growth potential is very attractive.

Adobe incurred adjusted operating expenses of $939.8 million, reflecting an increase of 5.8% sequentially and 11.7% year over year.

Adobe Systems Incorporated has repurchased over 2.2 million shares during the first quarter and returned $238 million of cash to stockholders. Analysts are looking for earnings of at least 91 cents a share on revenue of $1.72 billion. Following the transaction, the chairman now directly owns 16,088 shares in the company, valued at $1,695,836.08. Atria Investments LLC now owns 4,778 shares of the software company’s stock worth $519,000 after buying an additional 1,901 shares in the last quarter.

Caleres estimated net sales in the fiscal 2017 between $2.7 billion and $2.8 billion and diluted earnings per share in the range of $2.10 to $2.20.

We remain positive on Adobe’s market position, compelling product lines, continued innovation and strong balance sheet.

Adobe’s Marketing Cloud division is the company’s second biggest division and makes up 27% of its value.

In December, the software giant completed its acquisition of TubeMogul, a video advertising platform for $540 million, net of cash and debt. It has been suggested as “Buy Opinions” from 12 and 0 issued “Sell Thoughts” for the stock.

About 7.18M shares traded or 241.90% up from the average.

Leave a Reply

Your email address will not be published. Required fields are marked *