Adobe Inc. (NASDAQ: ADBE)
Adobe Systems announced solid fourth-quarter earnings and revenue growth after markets closed on Thursday.
The company also improved its revenue forecast for fiscal 2019 to $11.15 billion. It’s also expecting its high-margin digital-media segment to bring in addition recurring revenue of about $1.45 billion.
Adobe continues to benefit from its diversification into cloud-computing business for its marketing and creative software. Shares of the digital media and marketing software company gained a fraction in the extended trading session. ADBE closed the regular session at $248.08 after a gain of 1%.
ADBE Earnings & Outlook
Adobe reported net income of $678.2 million, or $1.37 per share, up from $501.5 million, or $1.02 per share, in the comparable period a year ago. Excluding one-time items, earnings came to $1.83 per share during the 13-week period to November 30, 2018.
Revenue was $2.46 billion for the quarter, up 23% from $2.01 billion in the same period last year. Analysts had called for adjusted earnings of $1.88 per share and revenue of $2.43 billion, according to figures compiled by FactSet.
Looking ahead, the company sees adjusted earnings of $1.60 per share on $2.54 billion revenue for fiscal 2019 first quarter. For the full year, Adobe expects adjusted earnings of $7.75 per share on $11.15 billion revenue.
Meanwhile, analysts forecast adjusted earnings of $1.88 per share on $2.51 billion revenue for fiscal 2019 first quarter. For the full year, analysts expect adjusted earnings of $7.98 per share on $10.78 billion revenue.
Adobe CEO Comments
“Adobe achieved record revenue of greater than $9 billion and delivered outstanding earnings performance in fiscal 2018,” said Shantanu Narayen, president and CEO, Adobe. “In 2018 we made significant investments across our product portfolio, entered new markets, and made strategic acquisitions which we believe will fuel continued top and bottom-line performance.”
Adobe, Inc. Company Profile
Adobe, Inc. engages in the provision of digital marketing and media solutions. It operates through the following segments: Digital Media, Digital Experience, and Publishing. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Light room and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat.
The Digital Experience segment offers solutions, including analytics, social marketing, targeting, media optimization, digital experience management, and cross-channel campaign management, as well as premium video delivery and monetization.
The Publishing segment offers legacy products and services for eLearning solutions, technical document publishing, web application development, and high-end printing. The company was founded by Charles M. Geschke and John E. Warnock in December 1982 and is headquartered in San Jose, CA. – CNN Money