NEW YORK (TheStreet) -- Shares of Adobe Systems(ADBE) - Get Report were higher in after-hours trading on Tuesday as the company reported better-than-expected fiscal 2016 third-quarter results and issued an upbeat fourth quarter forecast.
After today's market close, Adobe reported adjusted earnings of 75 cents per share, above Wall Street's expected 72 cents per share.
Revenue came in at $1.46 billion, beating analysts' projected $1.45 billion. The company said the increase in revenue was driven by strong performance in its digital media and cloud-based content segments.
For the same quarter last year, the San Jose, CA-based software company reported earnings of 54 cents per share and $1.22 billion in revenue.
Adobe said it now expects fiscal 2016 fourth-quarter earnings to be in the range of 83 cents to 89 cents per share. Wall Street is looking for 78 cents per share for the quarter.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Adobe Systems as a Buy with a ratings score of B+. This is driven by a number of strengths, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and expanding profit margins. Although the company may harbor some minor weaknesses, it feels they are unlikely to have a significant impact on results.
You can view the full analysis from the report here: