Adobe Systems Incorporated ($ADBE) Stock | Shares Spike Up on Positive Earnings


Adobe Systems Incorporated (NASDAQ: ADBE)



Adobe Systems Incorporated (ADBE), a global software company yesterday after market reported their first quarter and fiscal year 2016 financial results. Adobe reported earnings of $0.66 per share which beat analyst expectations of $0.61 per share. Adobe reported revenues increased 25% to $1.38 billion which beat analyst expectations of $1.34 billion.


Adobe Systems Incorporated CEO’s Comments

“Every day, more brands, government agencies and educational institutions globally are choosing to base their digital strategies on Adobe’s content and data platforms,” said Shantanu Narayen, Adobe president and chief executive officer. “Our exceptional performance in Q1 is an indicator of the strong momentum we are seeing across our cloud businesses as we drive the experience economy.”  Business Wire


CFO’s Comments 

“We are pleased to report another record quarter with 25 percent year-over-year revenue growth. Strong Cloud adoption drove record Creative and Marketing Cloud revenue in Q1, and better-than-expected Digital Media ARR,” said Mark Garrett, Adobe executive vice president and chief financial officer. “Based on our strong Q1 results and business momentum, we are increasing our annual revenue and earnings targets for the year.”  Business Wire


ADBE Technical Analysis


ADBE opened trading yesterday at $88.66 and closed trading at $89.96, equivalent to a 1% increase in price. After earnings were announced ADBE jumped to $95.55 a 6% increase from the closing price. Taking a look at the daily chart we can see the last time ADBE traded above this price level was on December 30th when it traded at $96.02. Taking a closer look at the daily chart we can see that ADBE had been on a recent upswing dating back to February 9th when it traded at $73.85. ADBE has a float of 496.27 million shares and it traded 1.5 times the normal daily trading volume on Thursday. For trading purposes, I would like to see it open above $93 tomorrow and if it does I would look to take a long position at the bell. My stop loss would be $0.40 from my entry point.


Company Profile

Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. This segment’s flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company’s Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, and audience management solutions, as well as video delivery and monetization to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Print and Publishing segment offers products and services, such as eLearning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at It also distributes certain products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. The company was founded in 1982 and is headquartered in San Jose, California.  Yahoo Finance