Adobe Systems Inc. (NASDAQ: ADBE) shares saw a handy gain on Thursday after the company issued an update on its fourth-quarter and full-year guidance. Adobe’s chief executive and chief financial officers will outline the company’s momentum, opportunities and strategies across each of its major businesses at its analyst meeting in Las Vegas.
Looking ahead to the fourth quarter, Adobe believes that it is on track to hit revenues of $1.95 billion and earnings per share (EPS) of $1.15. Thomson Reuters has consensus estimates calling for $1.16 in EPS on revenue of $1.95 billion. In the fourth quarter of 2016, Adobe posted EPS of $0.90 and $1.61 billion in revenue.
The company also issued preliminary financial targets for the 2018 full year. First the company expects to see revenues growing about 20% year over year to $8.7 billion. In terms of its segments:
- Digital Media segment revenue is expected to grow 23% year over year.
- Adobe Experience Cloud subscription revenue is predicted to grow about 20%.
- Adobe Experience Cloud total revenue is forecast to increase 15%.
As for the 2018 full year earnings, Adobe expects to see $5.50 per share. Consensus estimates call for $5.21 in EPS and $8.68 billion in revenue.
Shantanu Narayen, president and CEO of Adobe, commented:
Adobe’s vision has never been more clear or more relevant – to empower people and businesses to design and deliver amazing digital experiences. The FY2018 targets we are providing today include revenue growth of 20 percent and earnings growth of 30 percent, and reflect our continued momentum and leadership.
Shares of Adobe were last seen up about 10% at $168.05, with a consensus analyst price target of $164.30 and a 52-week range of $98.00 to $168.15.