The San Jose, Calif.-based company reported fiscal fourth-quarter adjusted profit of 36 cents a share on revenue of $1.07 billion, exceeding analysts' estimates.
Adobe also announced the acquisition of Fotolia, a stock image and video company, for $800 million in cash. Fotolia will be integrated into Adobe Creative Cloud, which makes software products available through a monthly subscription. Adobe said Fotolia runs a marketplace of royalty-free photos, graphics, and video with 34 million images and videos.
Must Read: Adobe's Fourth Quarter Conference Call Transcript
Adobe expects revenue and earnings in fiscal 2015 to "grow sequentially every quarter during the year," Chief Financial Officer Mark Garrett said in the earnings release.
The stock was trading 8.4% higher on Friday to $75.62. Here's what analysts said.
Brendan Barnicle, Pacific Crest Securities (Outperform; $85 PT)
ADBE exceeded FQ4 (Nov.) expectations. It provided very strong F2015 guidance for ARR and subscribers, which increases our confidence in the long-term model. While we are making only modest adjustments to our F2015 estimates, we are increasing our F2016 estimates and raising our target to $85.
With the prospect of $3.40 in EPS in F2016 and as much as $5.00 in F2017, ADBE could trade to at least $85, if not higher. Adobe is the industry leader in creative software, and with the introduction of the Creative Cloud, Adobe is making its creative software available to more users. In addition, Adobe is using its leadership in creative software to expand into marketing applications, which have a significantly larger market. Furthermore, Adobe is combining its creative solutions and marketing solutions to develop entirely new solutions, which could drive prolonged growth and outperformance.