Adobe Tops Estimates, Offers Stronger-Than-Forecast Outlook

Adobe, the graphic-arts-software giant, reported fiscal-fourth quarter results that topped analyst estimates.
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Shares of Adobe  (ADBE) - Get Report wavered in the premarket after the graphic-arts-software giant reported fiscal-fourth-quarter results that topped analyst estimates. 

For the quarter ended Nov. 27 Adobe earned an adjusted $2.81 a share as revenue rose 14% to $3.42 billion. 

Analysts surveyed by FactSet were expecting adjusted earnings of $2.66 a share on revenue of $3.36 billion.

With three "growing categories" -- creativity, digital documents and customer experience management -- "we are well-positioned to capture the massive market opportunity ahead of us in 2021 and beyond," Chief Executive Shantanu Narayen said in a statement.

The digital-media segment saw revenue of $2.5 billion in the quarter, up 20% year over year. 

The company also guided analysts and investors to first quarter earnings of $2.78 a share on revenue of $3.75 billion. 

Analysts in the FactSet survey were expecting earnings of $2.59 a share on revenue of $3.5 billion. 

The business has proved resilient and the company has operated with discipline and derived insights from real-time data, Adobe's executive vice president and chief financial officer, John Murphy, said. "[We] look forward to delivering strong top- and bottom-line growth in 2021."

For fiscal 2021, the company expects earnings of $11.20 a share on revenue of $15.15 billion. Analysts are expecting earnings of $11.17 per share on revenue of $14.78 billion.

At last check Adobe shares were trading off 0.5% at $481.50. They'd closed regular Wednesday trading off 2.3%. They've nearly doubled off their 52-week low above $255, set in mid-March. The 52-week high is nearly $537, set in early September.