Adobe Systems (NASDAQ:ADBE) released its earnings results on Thursday. The software company reported $1.66 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.54 by $0.12, RTT News reports. The firm had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.16 billion. Adobe Systems had a return on equity of 24.42% and a net margin of 24.40%. The company’s revenue was up 23.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.02 EPS. Adobe Systems updated its Q3 guidance to $1.68 EPS.
Shares of Adobe Systems stock traded up $1.97 during midday trading on Thursday, hitting $258.10. 5,338,687 shares of the company were exchanged, compared to its average volume of 2,884,709. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.12 and a quick ratio of 2.12. The company has a market capitalization of $123.61 billion, a PE ratio of 71.89, a price-to-earnings-growth ratio of 2.90 and a beta of 1.08. Adobe Systems has a 52 week low of $134.45 and a 52 week high of $258.91.
In related news, Director John E. Warnock sold 5,000 shares of the firm’s stock in a transaction that occurred on Tuesday, March 20th. The stock was sold at an average price of $224.94, for a total transaction of $1,124,700.00. Following the completion of the transaction, the director now owns 16,088 shares in the company, valued at approximately $3,618,834.72. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Ann Lewnes sold 2,942 shares of the firm’s stock in a transaction that occurred on Wednesday, May 16th. The stock was sold at an average price of $236.59, for a total value of $696,047.78. Following the transaction, the executive vice president now owns 70,322 shares of the company’s stock, valued at approximately $16,637,481.98. The disclosure for this sale can be found here. Insiders have sold a total of 46,819 shares of company stock valued at $10,451,729 in the last 90 days. 0.33% of the stock is owned by corporate insiders.
Adobe Systems declared that its board has approved a stock buyback program on Monday, May 21st that authorizes the company to buyback $8.00 billion in shares. This buyback authorization authorizes the software company to reacquire up to 6.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.
A number of analysts have issued reports on the company. KeyCorp raised their target price on Adobe Systems to $252.00 and gave the company an “overweight” rating in a report on Friday, March 16th. Jefferies Financial Group raised their target price on Adobe Systems to $263.00 and gave the company a “buy” rating in a report on Friday, March 16th. DZ Bank raised Adobe Systems from a “hold” rating to a “buy” rating in a report on Tuesday, March 20th. Stifel Nicolaus raised their target price on Adobe Systems from $210.00 to $230.00 and gave the company a “buy” rating in a report on Monday, March 12th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $235.00 target price (up previously from $210.00) on shares of Adobe Systems in a report on Friday, March 16th. Ten research analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Adobe Systems presently has an average rating of “Buy” and an average price target of $223.03.
Adobe Systems Company Profile
Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products.
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