[ACCESSWIRE]
Upcoming AWS Coverage on Intuit Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 22, 2016 / Active Wall St. announces its post-earnings coverage on Adobe Systems Inc. (NASDAQ: ADBE). The Company released its fourth quarter and fiscal 2016 financial results on December 16, 2016. The maker of Photoshop, Illustrator design software and PDFs posted revenue growth for 11th consecutive quarter, outperforming market and its own estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Adobe Systems' competitors within the Application Software space, Intuit Inc. (NASDAQ: INTU), reported on November 17, 2016, financial results for the first quarter of fiscal 2017, which ended October 31, 2016. AWS will be initiating a research report on Intuit in the coming days.
Today, AWS is promoting its earnings coverage on ADBE; touching on INTU. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=ADBE
http://www.activewallst.com/registration-3/?symbol=INTU
Earnings Reviewed
For the three months ended December 02nd 2016, Adobe achieved record quarterly revenue of $1.61 billion, representing y-o-y growth of 23%. The Company's revenue came in above analysts' expectations of $1.59 billion and also above its own prediction of the range of $1.55 billion and $1.60 billion. In FY16, Adobe achieved record annual revenue of $5.85 billion, representing y-o-y growth of 22%.
For Q4 FY16, Adobe's net income rose to $399.6 million, or $0.80 per share, compared to net income of $222.7 million, or $0.44 per share, a year earlier. Excluding certain items, earnings per share rose to $0.90 per share from $0.62 per share. Analysts had predicted adjusted earnings of $0.86 per share, while the Company forecasted a range between $0.83 per share and $0.89 per share. For FY16, earnings per share were $2.32, and on an adjusted basis, the Company reported earnings per share of $3.01.
Segment Results
During Q4 FY16, Adobe's Digital Media segment revenue totaled $1.08 billion, with Creative revenue growing 33% y-o-y to $886 million. The company stated that Strong Creative Cloud and Document Cloud adoption drove Digital Media Annualized Recurring Revenue ("ARR") to exit FY16 with $4.01 billion, well ahead of the Company's original target of $3.875 billion. The net ARR increase in Creative during Q4 FY16 was $316 million on a q-o-q basis. For FY16, Adobe achieved creative revenue of $3.2 billion, which increased 38% compared to the year ago same period.
Adobe Document Cloud, which leverages the PDF standard the company pioneered, generated Q4 FY16 revenue of $191 million and the Document Cloud ARR grew to $475 million. During Q4 FY16, the Company's Adobe Marketing Cloud achieved generated revenue of $465 million, delivering 32% y-o-y. Adobe Marketing Cloud achieved $1.63 billion in annual revenue, representing 20% y-o-y growth.
Balance Sheet
During Q4 FY16, Adobe's cash flow from operations was a record $696 million. Adobe generated $2.2 billion in operating cash flow during the year, which represents 50% year-over-year growth. The Company's deferred revenue grew to an all-time high of $2.01 billion, and unbilled backlog grew to approximately $3.42 billion.
Adobe repurchased approximately 3.2 million shares during Q4 FY16, returning $331 million of cash to stockholders. For FY16, the company repurchased 10.4 million shares, returning $1.01 billion of cash to stockholders. The company has $500 million remaining under its current authority granted January 2015.
Outlook
Adobe provided total revenue guidance of approximately $6.95 billion for FY17, which, factoring the extra week in FY16, represents approximately 21% y-o-y growth. The Company expects to achieve FY17 GAAP earnings per share of approximately $2.85, and non-GAAP earnings per share targeted at approximately $3.75. For Q1 FY17, Adobe is targeting revenue of approximately $1.625 billion.
Stock Performance
On Wednesday, December 21, 2016, the stock closed the trading session at $105.51, falling 0.25% from its previous closing price of $105.77. A total volume of 2.51 million shares have exchanged hands. Adobe Systems' stock price advanced 9.67% in the last six months, and 12.46% in the previous twelve months. Furthermore, on a year to date basis, the stock surged 12.32%. Shares of the company have a PE ratio of 53.75.
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