Adobe Systems Incorporateds (ADBE) second-quarter net income and current-quarter forecast outstripped market expectations as a result of the software producers swift push to the cloud. Creative Cloud, the flagship product of Adobes digital media business, encompasses the Photoshop photo-editing software as well as the Flash web video building application.
Adobe shares closed higher for a third consecutive trading session on Tuesday. The stock went up 0.40% ($0.56) to $140.91, after touching an intraday high at $142.30, or a price level not seen since June 9th ($143.59). Yesterdays after-hours trade saw Adobes shares gaining 3.61% to a fresh all-time high of $146.00.
In the week ended on June 18th the shares of the software provider lost 0.15% of their market value compared to a week ago, which marked a second consecutive period of decrease, but yet, it has been the smallest retreat in more than a year. The stock has pared its loss to 0.67% so far during the current month, following a 6.07% surge in May. The latter has been a sixth consecutive month of gains. For the entire past year, the shares of the NASDAQ-listed company gained 9.59%.
Adobes digital media revenue was reported to have surged 29% to $1.21 billion during the quarter ended on June 2nd. In comparison, the median forecast by analysts had pointed to $1.17 billion in revenue, financial data and analytics firm FactSet reported.
The latter also said that Adobes digital media annualized recurring revenue of $4.56 billion in the latest quarter outpaced the median analyst estimate as well.
According to Adobe Systems, the companys annualized recurring revenue was attributed to sound demand for Creative Cloud and strong adoption and retention of Document Cloud.
The software maker projects its digital media annualized recurring revenue to grow by about $300 million during the current three-month period.
At the same time, Adobes subscription revenue was reported to have soared almost 37% to $1.48 billion during the quarter ended on June 2nd.
As a result, the software firms total revenue grew 27% to $1.77 billion during the second quarter from a year ago. In comparison, the median forecast by analysts had pointed to $1.73 billion in total revenue.
Meanwhile, Adobes net income was reported to have increased to $374.4 million ($0.75 per share) during the latest quarter from $244.1 million ($0.48 per share) during the same period a year ago.
Earnings per share, excluding special items, were reported at $1.02 during the recent quarter, which again exceeded what analysts had anticipated ($0.95 per share).
Adobe now projects its third-quarter adjusted earnings to be $1.00 per share, or above the median analyst forecast ($0.97 per share), according to Thomson Reuters I/B/E/S.
The company also expects its third-quarter revenue to reach $1.82 billion, or a figure again exceeding market consensus ($1.80 billion).
According to CNN Money, the 29 analysts, offering 12-month forecasts regarding Adobe Systems Inc’s stock price, have a median target of $145.00, with a high estimate of $160.00 and a low estimate of $109.00. The median estimate is a 2.90% surge compared to the closing price of $140.91 on June 20th.
The same media also reported that 23 out of 33 surveyed investment analysts had rated Adobe Systems Inc’s stock as “Buy”, while 7 – as “Hold”.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Adobe stock are presented as follows:
R1 – $141.10
R2 – $141.30
R3 (Range Resistance – Sell) – $141.49
R4 (Long Breakout) – $142.07
R5 (Breakout Target 1) – $142.75
R6 (Breakout Target 2) – $143.03
S1 – $140.72
S2 – $140.52
S3 (Range Support – Buy) – $140.33
S4 (Short Breakout) – $139.75
S5 (Breakout Target 1) – $139.07
S6 (Breakout Target 2) – $138.79
By using the traditional method of calculation, the weekly levels of importance for Adobe Systems Incorporated (ADBE) are presented as follows:
Central Pivot Point – $136.63
R1 – $142.06
R2 – $146.28
R3 – $151.71
R4 – $157.14
S1 – $132.41
S2 – $126.98
S3 – $122.76
S4 – $118.54
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