What Lit a Fire Under Adobe Shares?
Adobe Inc. (NASDAQ: ADBE) shares jumped on Tuesday after the company reaffirmed its guidance and provided a business update at its Adobe Max Creativity Conference. At the event, Adobe’s executive team will discuss the company’s expanded growth opportunities and strategies across each of its major businesses.
Ahead of the event, Adobe is reaffirming its current fourth-quarter revenue and earnings per share (EPS) targets. The company expects to see $1.87 in EPS and $2.42 billion in revenue, which compares to the consensus estimates of $1.89 in EPS and $2.43 billion in revenue.
The company also provided preliminary growth targets for fiscal year 2019, in which it expects to see total revenue growth of 20% year over year, with $1.4 billion of net new annualized recurring revenue in the Digital Media segment and 25% growth in Digital Experience subscription bookings.
Looking ahead to 2019, Thomson Reuters consensus estimates call for $7.84 in EPS and $10.74 billion in revenue.
Note that these targets do not reflect Adobe’s planned acquisition of Marketo, which the company expects to close during the fourth quarter of fiscal 2018.
Shantanu Narayen, president and CEO of Adobe, commented:
Our strategy of empowering people to create and transforming how businesses compete is leading to larger addressable market opportunities and the potential for accelerated revenue and earnings growth. Our 2019 growth targets reflect our continued momentum and market leadership.
Shares of Adobe were last seen up about 8% on Tuesday to $256.80, with a consensus analyst price target of $290.28 and a 52-week trading range of $148.15 to $277.61.