Join        Login             Stock Quote

Adobe Systems (ADBE) 4Q Earnings Up 28 Pct; Guides 1Q Below Street

 December 13, 2012 04:31 PM

(By Balaseshan) Adobe Systems Inc. (NASDAQ: ADBE) reported a 28% jump in quarterly earnings on strong creative cloud and marketing cloud adoption. However, the company guided first quarter and full year 2013 below Street's view.

Earnings for the fourth quarter were $222.33 million or $0.44 per share, compared to $173.72 million or $0.35 per share last year. Adjusted earnings per share (EPS) declined to $0.61 from $0.67.

Revenue marginally rose 0.1% to $1.153 billion, due to lower products revenue offsetting increase subscription, and services and support revenues.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.57 per share on revenue of $1.10 billion for the fourth quarter.

Total operating expenses fell nearly 9 percent.

[Related -Adobe Systems Incorporated (NASDAQ:ADBE): How Q4 Earnings Will Fare?]

During the quarter, the company continued to accelerate adoption of Adobe creative cloud as it migrates to a subscription model. Adobe also achieved record Adobe marketing cloud and document services revenue during the fourth quarter.

Products revenue fell to $852.84 million from $931.90 million, while subscription revenue grew to $194.54 million from $128.44 million. Services and support revenue rose to $106.05 million from $91.83 million.

Adobe added about 132,000 Creative Cloud paid subscriptions in the fourth quarter. Adobe added about 10,000 Creative Cloud subscriptions per week during the quarter, versus the addition of 8,000 subscriptions per week in the third quarter.

[Related -Adobe Systems Inc. (ADBE) Q3 Earnings Preview: A Big Quarter On The Way?]

Looking ahead into the first quarter, the company expects adjusted earnings of $0.26 to $0.32 per share and revenue of $950 million to $1 billion, while Street analysts predict profit of $0.56 per share on revenue of $1.07 billion.

For the fiscal 2013, the company projects adjusted earnings of about $1.40 and revenue of about $4.1 billion, while Street predicts profit of $2.35 per share on revenue of $4.48 billion.

ADBE closed Thursday's regular session down 1.19% at $35.53. The stock has been trading between $26.25 and $36.50 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

article imageHoliday Fever Takes Hold Of Stock Investors, But A Pullback Is Needed

With warmer weather arriving to melt the early snowfall across much of the country, investors seem to be read on...

article imageIs 0% Growth For 90% A Successful Economic Model?

Via Greg Mankiw I read the review of Piketty's book by Deirdre McCloskey. The review reminds me of the read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.