Adobe reports a 14% annualised growth in its revenue in the third quarter
- Adobe reports a 14% annualised growth in its revenue in the third quarter.
- It posted £740.82 million of net income and £2.51 billion of revenue in Q3.
- Adobe gives a stronger than expected guidance for the fiscal fourth quarter.
Adobe Inc. (NASDAQ: ADBE) published its financial results on Tuesday that came in stronger than what analysts had expected for its fiscal third quarter. In the first week of September, Chief Marketing Officer Ann Lewnes of Adobe was reported to have sold £2.02 million of shares.
Shares of the company jumped more than 2% in extended trading on Tuesday. Including the price action, Adobe is now trading at £394 per share. The stock had plummeted to a year to date low of £221 per share in March after having started the year at a higher £260 per share. Interested in investing in the stock market online? Here’s a simple guide to get you started.
Adobe’s Q3 financial results versus analysts’ estimates
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Adobe said that its net income in the third quarter came in at £740.82 million that was stronger than £615.15 million in the comparable quarter of 2019. In terms of adjusted earnings, the company recorded £1.99 per share versus the year-ago figure of £1.26 per share.
The computer software company saw a 14% annualised growth in its revenue to £2.51 billion in Q3. In the same quarter last year, its revenue had printed at £2.17 billion. According to FactSet, experts had forecast the company to report a lower £2.45 billion in revenue in the recent quarter. Their estimate for adjusted earnings per share was capped at £1.87.
Adobe also provided its financial guidance for the fiscal fourth quarter on Tuesday that also came in stronger than the analysts’ estimates. In the prior quarter (Q2), Adobe’s performance was also reported hawkish on the back of higher demand for digital products.
Other prominent figures in Adobe’s earnings report
Other prominent figures in Adobe’s reports on Tuesday include £1.82 billion in revenue from its digital media business. Revenue from Creative Cloud printed at £1.52 billion. Both segments generated revenues that were 19% higher on a year over year basis.
At £290.90 million, digital media revenue jumped 22% in the fiscal third quarter. Adobe generated £650.06 million from its Digital Experience segment in Q3. Cash flows from operations, Adobe added, registered at a record £1.12 billion. The San Jose-based company also said on Tuesday that it repurchased roughly 1.5 million shares in the recent quarter.
At the time of writing, Adobe Inc has a market cap of £185 billion and a price to earnings ratio of 65.64.