Adobe Systems Incorporated (NASDAQ:ADBE) released its Q3 results on Tuesday in which the company posted an earnings per share of $1.10 for the quarter, beating forecasts of just $1.01 a share. Revenue of $1.84 billion was a record high and also higher than the $1.82 that was expected by analysts. Year-over-year revenue was up over 26%, as the company saw a 34% increase in its subscription sales, while product-related revenue dropped by 12%.
For its last quarter of the year the company expects to see earnings of $1.15 per share and sales of $1.95 billion. Despite the strong earnings the shares were down in after hours trading by over 3% as investors may have been hoping for more of an increase in the guidance for Q4.
Adobe has seen its share climb over 52% year-to-date and the share has been making new all-time highs. The stock currently trades over 50 times its earnings but is not as expensive as other tech stocks and the company has been able to consistently grow its top and bottom lines.
In its most recent fiscal year, the company saw revenues rise 22% and in three years sales have grown 44%. The company’s bottom line has been more impressive with profit growth of 86% in the past year and in three years the bottom line has more than quadrupled.
A decline in share price could be a great opportunity for investors to buy the stock on a dip. For a stock trading in the tech industry, this presents a good value for the amount of growth the company has been able to achieve.
