Adobe beats analysts’ expectations

21 Sep 2011

Shantanu Narayen, president and CEO of Adobe

Graphic design software maker Adobe Systems Incorporated’s fourth-quarter sales forecast beat analysts’ estimates, buoyed by demand for creating content and digital marketing.

Sales will be US$1.08bn-US$1.13bn in the fourth quarter, the company said yesterday, when it reported financial results for its third quarter fiscal year 2011 ended 2 September 2011. That beat the average US$1.07bn estimate of analysts, according to Bloomberg data.

Adobe reported revenue of $1.01bn, which is an increase of 2.3pc.

Third-quarter profit also beat estimates, even though it was less than the same period last year. Net income fell 15pc to US$195.1m, or 39 US cents a share, from US$230.1m, or 44 US cents last year.

Adobe’s shares rose US$1.73, or 7pc, to $26.37 in Tuesday’s extended trading after the company released its financial results.

“Our industry is in the midst of a major transformation,” said Shantanu Narayen, president and CEO of Adobe. “We are aligning around two large initiatives: Content authoring and digital marketing. Each of these opportunities offers significant growth potential, and Adobe is well-positioned to be the market leader in both.

Mark Garrett, executive vice-president and CFO of Adobe, added that the company delivered strong earnings in Q3.

“At the high end of our financial targets for our fourth quarter, we will achieve our 10pc annual revenue growth target, as well as earnings growth of 20pc for the fiscal year,” said Garrett.