Adobe report and forecasts
Indications and contraindications for taking Adobe Systems has reported accelerating earnings and revenue growth, beating market analysts' expectations and raising its earnings and revenue forecast for the full financial year 2021.
Adobe Systems (ADBE) on Wednesday reported record revenues for Q1 of fiscal 2021, which ended on 5. 2021, which ended on 5 March, boosting its full-year forecast and confidence that key demand for its software will remain strong during a pandemic when quarantine restrictions are lifted.
In October, the company introduced a version of its popular Illustrator app for Apple's iPad (AAPL) to offer its products on more devices used by professionals and amateurs.
Adobe's Q1 fiscal 2021 report
Adobe reported a 38% increase in earnings per share from last year to $3.14, above analysts' estimates of $2.78. The company's total quarterly revenue rose 26% to $3.91 billion, also above the average analyst forecast of $3.76 billion.
Digital Media's first quarter revenues accelerated to 32% year-over-year growth to $2.86 billion, with Digital Media's revenues up 20% last quarter. Digital Media includes sales of products such as Photoshop, Creative Cloud and Document Cloud for digital media content creation and document management.
Revenue from Adobe's Digital Experience division, which includes marketing software, jumped 24% to $934 million in the same period. Adobe projections Adobe expects second-quarter earnings of $2.81 per share on revenue of $3.71 billion, beating market analysts' expectations of $2.70 earnings per share on revenue of $3.70 billion. Adobe raised its earnings forecast for fiscal 2021 from a previous estimate of $11.20 to $11.85 and its revenue forecast from $15.15 billion to $15.45 billion. The average analyst forecast is $11.26 earnings per share on revenues of $15.2 billion in fiscal 2021.
Adobe also announced that CFO John Murphy intends to retire in 2021 after a successor is found.