Adobe Earnings Jump as Revenue Passes $1 Billion
Dec 20th 2010 11:00PM
Updated Dec 20th 2010 11:10PM
Investors pumped the stock up by $1.57, or 5.4%, to $30.75 in extended trading, after the release of the results.
The maker of Photoshop, Acrobat and Flash software earned $269 million, or 53 cents per share, in the fiscal fourth quarter, which ended Dec. 3. In the same period last year, it posted a loss of $32 million, or 6 cents per share, weighed down by tax effects and restructuring costs.
Adjusted earnings were 56 cents per share in the latest quarter, surpassing the average forecast of 52 cents per share among analysts surveyed by Thomson Reuters.
Adobe says revenue jumped 33% to $1.01 billion from $757 million last year. It was Adobe's first billion-dollar quarter.
Adobe, which is based in San Jose, Calif., says it expects to earn 54 cents to 59 cents per share in the current quarter, excluding items, on revenue of $1 billion to $1.05 billion. Analysts were expecting 51 cents, on $992 billion of revenue.
Overall, Adobe expects revenue to grow 10% next year, reflecting slower growth than the just-ended year, when sales rebounded from the recession.
CEO Shantanu Narayen said the company expects to benefit from the continuing e-book revolution, as publishers adopt its software tools. It also plans to help developers who want to make software for tablet computers.
Sales of Creative Suite 5, a version of Adobe's flagship software launched earlier this year, are 21% higher than they were for Creative Suite 4 at the same time after its launch, Narayen said.
For the full year, Adobe earned $775 million, or $1.47 per share, on $3.8 billion of revenue. In the previous year, it earned $387 million, or 73 cents per share, on $2.95 billion of revenue.
In the regular trading session, shares increased 39 cents, or 1.4%, to close Monday at $29.18.
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