Adobe Rises 5% After Inline Q4
Adobe (NASDAQ: ADBE) is up more than five percent in after hours trading after the company announced its fourth quarter results.
The Photoshop maker reported a Q4 EPS of $0.32, which was inline with Wall Street's estimates.
Earnings per share were down 48 percent from the year-ago period.
Revenue came in at $1.04 billion versus the slightly lower Street estimate of $1.03 billion. Sales were down 10 percent year-over-year.
"Adobe has redefined the Creative and Digital Marketing categories with its industry-leading Cloud offerings,” Shantanu Narayen, President and CEO of Adobe, said in a company release. "Creative Cloud and Adobe Marketing Cloud are the clear market leaders and are poised for accelerated growth."
"We are leading the software industry in transitioning our business to the Cloud, which is enabling us to target higher top-line growth and greater recurring revenue," added Mark Garrett, Executive VP and CFO of Adobe, who was also quoted in the company release. "We are raising our long-term revenue growth targets, with a compound annual revenue growth rate of 20 percent between fiscal year 2014 and fiscal year 2016."
Adobe expects its first quarter EPS to be between $0.22 and $0.28 versus the Street estimate of $0.33.
The company expects its FY2014 EPS to come in at $1.10 -- well below the Street estimate of $1.61.
The company hopes to turn things around in the coming years by achieving an FY2015 EPS of $2.00 and an FY2016 EPS of $3.00.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.