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Dec. 12, 2019, 4:23 p.m. EST

Adobe stock heads toward record highs after earnings show 20% revenue gains continuing

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By Jeremy C. Owens

ADBE

Adobe Inc. /zigman2/quotes/200389143/composite ADBE -3.13% maintained its 20%+ revenue gains as it rounded out its fiscal year, the software company reported Thursday afternoon, sending shares toward record highs in late trading. Adobe reported fiscal fourth-quarter earnings of $851.9 million, or $1.76 a share, on sales of $2.99 billion, up 21.4% from revenue of $2.46 billion a year ago. After adjusting for stock-based compensation and other factors, the company reported earnings of $2.29 a share. Analysts on average expected adjusted earnings of $2.26 a share on sales of $2.97 billion, according to FactSet. Adobe was expected by some analysts to slide lower than 20% sales growth, which might have created some concerns beyond the Photoshop maker. "The foundational reality is that if our forecasts, and a couple dozen others', are correct, Adobe is about to become the first large cap software company in the SaaS era to decelerate below the 20% revenue growth threshold," Canaccord Genuity analysts wrote in a note earlier this week. "This rate of growth has taken on a near mythical importance, at least in Silicon Valley as 20% historically has been the demarcation between the cool kids and the clod kickers who reside in flyover states." Adobe's stock closed with a 0.7% gain at $305.96, then jumped more than 3% in after-hours trading to more than $315. The record closing price for Adobe shares is $311.27 and the intraday record price is $313.11, both of which were set in July.

/zigman2/quotes/200389143/composite
US : U.S.: Nasdaq
$ 449.57
-14.54 -3.13%
Volume: 3.29M
Aug. 7, 2020 4:00p
P/E Ratio
59.29
Dividend Yield
N/A
Market Cap
$215.64 billion
Rev. per Employee
$445,024
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