The shares of Adobe Inc. a smooth start in extended trading Tuesday after software company announced first-quarter fiscal results that beat strong financial expectations and direction for the year.
Adobe ADBE,
reported net income of $ 1.26 billion, or $ 2.61 a share, compared to net income of $ 955 million, or $ 1.98 a share, in the fourth year ago. The company’s adjusted net income was $ 3.14 per share.
Revenue climbed 26% to $ 3.91 billion from $ 3.1 billion a year ago. Digital media revenue led the cost by $ 2.86 billion, up 32% year-over-year.
“Adobe saw higher Q1 revenue and we are raising our annual targets based on the tremendous opportunity across our industry and our continued confidence in global performance,” Adobe CEO Shantanu Narayen said in a statement at announce the results.
Analysts who conducted FactSet expected net revenue in the first quarter of $ 2.79 a share on revenue of $ 3.75 billion.
The Silicon Valley company was also offering guidance in the second quarter and full year that exceeded analysts ’estimates, and said Chief Financial Officer John Murphy plans to retire in 2021. For the fiscal year, Adobe expects revenue of $ 15.45 billion and adjusted earnings of $ 11.85 installments. FactSet analysts have forecast $ 15.17 billion and $ 11.27 billion, respectively.
Adobe stock is down 8% so far this year. Wider SPX 500 S&P Index,
improved 4% this year.
“We love Adobe’s monopolistic position within the creative cloud, where it delivers critical solutions to a critical demographic of creators,” JMP Securities equality research analyst Pat Walravens said in a statement. Adobe’s ongoing performance assessment.