Adobe Profit Rises, Stock Up - Update

(RTTNews) - Enterprise software maker Adobe Systems Inc. (ADBE), Thursday reported a surge in fourth-quarter profit as revenues jumped 22 percent with more subscribers added to its Creative Cloud service. The photoshop maker's earnings topped Wall Street estimates. Adobe shares gained 4 percent in after-hours trade on the Nasdaq.

San Jose, California-based Adobe's fourth-quarter profit rose to $222.7 million or $0.44 per share from $88.1 million or $0.17 per share last year.

Adjusted earnings for the quarter were $0.62 per share, up from $0.39 per share last year.

On average, 24 analysts polled by Thomson Reuters expected earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Adobe said its revenue for the quarter jumped 22 percent to $1.31 billion from $1.07 billion a year ago. Analysts had a consensus revenue estimate of $1.31 billion for the quarter.

CEO Shantanu Narayen said, "Our record revenue and strong momentum are a reflection of our industry-leading content and data solutions in Digital Media and Digital Marketing."

Moving ahead, CFO Mark Garrett said, "Our long-term financial targets, including a 20% revenue CAGR through fiscal 2018, show that the benefits of our move to the cloud are just beginning."

Adobe has been focusing on cloud based subscriptions to boost revenue. Its Creative Cloud software as a service offering gives users access to a range of its software, for a monthly or annual subscription. Customers prefer the cloud route instead of buying individual products and software suites for a licensee fee.

The company added 833 thousand net new individual and team Creative Cloud subscriptions during the quarter.

ADBE closed Thursday's trading at $88.96, down $0.60 or 0.67%, on the Nasdaq. The stock further gained $3.54 or 3.98% in the after-hours trade.