Adobe (ADBE) Posts Solid Q3 Results, Q4 Guidance
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Price: $275.30 +1.13%
EPS Growth %: +14.1%
Financial Fact:
Services and support: 114.41M
Today's EPS Names:
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EPS Growth %: +14.1%
Financial Fact:
Services and support: 114.41M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Adobe Systems Incorporated (Nasdaq: ADBE) today reported financial results for its third quarter fiscal year 2011 ended Sept. 2, 2011.
For the third quarter, the company reported $1.013 billion in revenue, up from $990.32 million last year and slightly inline with the consensus of $1.03 billion.
GAAP diluted earnings per share were $0.39 while non-GAAP diluted earnings per share were $0.55. GAAP earnings per share and non-GAAP earnings per shares for the third quarter 2010 were $0.44 and $0.54. The Street was forecasting earnings per share of $0.54.
GAAP operating income was $274 million, down from $302 million in the third quarter of 2010, with an operating margin of 27.1 percent. Non-GAAP operating income was $366 million, down from $384 million in the third quarter of 2010, with a Non-GAAP operating margin was 36.1 percent.
GAAP net income was $195 million, down from $230 million in the third quarter of 2010. Non-GAAP net income was $273 million, down from $284 million in the third quarter of 2010.
Cash flows from operations rose from $291 million in September of 2010 to $325 million in the third quarter of 2011.
Fourth Quarter Outlook:
For the fourth quarter of fiscal 2011, Adobe is targeting revenue of $1.075 billion to $1.125 billion. The Street is currently estimating that revenue will be 1.07 billion.
The Company’s operating margin is targeted to be 26.5 percent to 29.5 percent on a GAAP basis, and 36 percent to 38 percent on a non-GAAP basis.
ADBE is also targeting its share count to be between 497 million and 499 million shares, and it is targeting non-operating expense between $17 million and $21 million. Adobe's GAAP and non-GAAP tax rates are expected to be approximately 22 percent.
For the fourth quarter, diluted earnings per share has a target range of $0.41 to $0.50 on a GAAP basis, and an earnings per share target range of $0.57 to $0.64 on a non-GAAP basis. The Street is estimating earnings per shares of $0.59.
"Our industry is in the midst of a major transformation,” said Shantanu Narayen, president and CEO of Adobe. “We are aligning around two large initiatives: Content Authoring and Digital Marketing. Each of these opportunities offers significant growth potential, and Adobe is well-positioned to be the market leader in both."
Shares of ADBE are trading up to $26.40 in the after-hours today after closing at $24.64 on the day.
For the third quarter, the company reported $1.013 billion in revenue, up from $990.32 million last year and slightly inline with the consensus of $1.03 billion.
GAAP diluted earnings per share were $0.39 while non-GAAP diluted earnings per share were $0.55. GAAP earnings per share and non-GAAP earnings per shares for the third quarter 2010 were $0.44 and $0.54. The Street was forecasting earnings per share of $0.54.
GAAP operating income was $274 million, down from $302 million in the third quarter of 2010, with an operating margin of 27.1 percent. Non-GAAP operating income was $366 million, down from $384 million in the third quarter of 2010, with a Non-GAAP operating margin was 36.1 percent.
GAAP net income was $195 million, down from $230 million in the third quarter of 2010. Non-GAAP net income was $273 million, down from $284 million in the third quarter of 2010.
Cash flows from operations rose from $291 million in September of 2010 to $325 million in the third quarter of 2011.
Fourth Quarter Outlook:
For the fourth quarter of fiscal 2011, Adobe is targeting revenue of $1.075 billion to $1.125 billion. The Street is currently estimating that revenue will be 1.07 billion.
The Company’s operating margin is targeted to be 26.5 percent to 29.5 percent on a GAAP basis, and 36 percent to 38 percent on a non-GAAP basis.
ADBE is also targeting its share count to be between 497 million and 499 million shares, and it is targeting non-operating expense between $17 million and $21 million. Adobe's GAAP and non-GAAP tax rates are expected to be approximately 22 percent.
For the fourth quarter, diluted earnings per share has a target range of $0.41 to $0.50 on a GAAP basis, and an earnings per share target range of $0.57 to $0.64 on a non-GAAP basis. The Street is estimating earnings per shares of $0.59.
"Our industry is in the midst of a major transformation,” said Shantanu Narayen, president and CEO of Adobe. “We are aligning around two large initiatives: Content Authoring and Digital Marketing. Each of these opportunities offers significant growth potential, and Adobe is well-positioned to be the market leader in both."
Shares of ADBE are trading up to $26.40 in the after-hours today after closing at $24.64 on the day.
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