Adobe Systems Incorporated (NASDAQ: ADBE)
On Thursday March 17th, Adobe Systems Incorporated reported their first quarter earnings results which blew away analysts estimates and forward-looking price targets. The company, best known for its products Photoshop, Acrobat, and Illustrator, posted results that topped nearly all Wall Street analysts expectations. The company earned $254 million dollars, which equals a net income of $0.50 per share. Revenues came in at 1.38 billion dollars during the three-month period which beat estimates coming in at an expected 1.3 billion dollars.
The Technicals/Chart
When we look at the daily price chart going back to June of 2015, we will see two trend lines- one in red which serves as resistance and one in green which serves as support. Further delving into the chart, we will see a circled white area with a green arrow, this is where shares will likely open up for Friday’s training session after the earnings report that was released today. When we look to the left we will see a green circle and text that says “ previous all-time highs”, this is Adobe’s all-time highs in the recent past which were violated in the after-hours session today. That area ($96.42) will serve as formidable resistance when trading opens up for tomorrow; however, if it breaks through on heavy and increasing volume, there is no telling where Adobe’s share price may go.
ADBE- After Hours
In after-hours trading shares traded to an all-time new high of $97.70. Shares subsequently retraced a bit, closed at $95.20, which was up $5.24 or +5.82% in the session which ends at 8pm E.D.T.
Company 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,” Adobe CEO Shantanu Narayen said in a statement. “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.”
Narayan added,
“Adobe’s year is off to a strong start, Adobe’s opportunity has never been greater … Our market leadership, product differentiation and continued momentum give us confidence to raise our FY16 revenue and earnings targets.”
“Strong Cloud adoption drove record Creative and Marketing Cloud revenue in Q1, and better-than-expected Digital Media (annualized recurring revenue),” Adobe Chief Financial Officer Mark Garrett said in a statement. “Based on our strong Q1 results and business momentum, we are increasing our annual revenue and earnings targets for the year.”- InvestorsBusinessDaily
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 segments 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 companys 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 adobe.com. 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
