Software maker, Adobe System Inc. released on Thursday an impressive fourth quarter revenue and profit growth results. The company’s profit climbed to $399.6 million or $0.80 per share compared to the $222.7 million or $0.44 per share from same period last year, beating forecasts from Wall Street.
The quarter increase marks a 6-quarter high for Adobe with its 20% sales growth. The year-on-year sales increased 45%, with revenue of $1.61 billion, and a climb of 23% during the quarter.
Wall Street gave an estimate that Adobe will generate around $0.86 a share excluding items on sale of $1.59 billion, but Adobe was able to surpass the forecast with an impressive fourth quarter report.
According to Adobe, their diluted earnings per share were $0.80 on a GAAP-basis, and $0.90 for the non-GAAP basis. Its Digital Marketing department saw a revenue reaching $1.08 billion, with their Creative revenue increased by 33% year-on-year to $886 million.
Adobe has released expected earnings per share of $3.75 for fiscal 2017, and revenue forecast at around $6.95 billion, both of which were behind analyst forecast.
“Adobe’s market –leading digital media and digital marketing solutions are revolutionizing how customers design and deliver exceptional digital experiences,” states Adobe president and CEO Shantanu Narayen. “We enter 2017 with significant market momentum and strong technology tailwinds.”
Mark Garret, Adobe vice president and CFO added, “Across our business, Adobe had a strong 2016 as we met or exceeded all of our key financial targets for the year. We are uniquely positioned as a cloud provider to deliver both top line and bottom line growth.”
During the quarter, Adobe repurchased around 3.2 million of their shares, returning around $331 million in dividends to its stockholders. For the whole year, the company repurchased 10.4 million shares with $1.01 billion returns to its stockholders.
After the positive news of Adobe’s impressive Q4 results, its shares rose 0.69% or $0.73 to $105.83 after the Thursday close. Prior to Adobe’s notable report, its shares had already climbed 11.88% year-to-date, resulting in its placement along with the benchmark S&P 500’performance.
Adobe’s cloud based subscription were their focus to help boost their revenue. The Creative Cloud software offered by Adobe allows users to access a variety of other software. The software is available for a monthly or annual subscription, which customers prefer more instead of constantly having to purchase individual products for a license fee.
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