Adobe Systems rolls past Q1 forecasts
Published: 17 Mar 2000 11:47 GMT
Adobe Systems flew past analysts' estimates in its first quarter on Thursday, posting a profit of $64.6m (£40m), or 51 cents (32p) a share, on record sales of $282.2m (£174.9m).
First Call consensus expected the software developer to earn 43 cents (27p) a share in the quarter. Adobe shares closed up 10 7/8, or 13 percent, to 94 7/16 ahead of the earnings report.
The $282.2m (£174.9m) in sales marks a 24 percent improvement from the same quarter a year ago, when it earned $38.3m (£23.7m), or 30 cents (19p) a share, on sales of $227m (£140m). "Our results in the first quarter demonstrate the success and momentum of our current product line up," said chief executive, John Warnock, in a prepared release. "As Adobe enters the second quarter, we are in the strongest position ever in terms of our upcoming product releases and the efficiency of our operational infrastructure."
Operating profit for the first quarter was $89m (£55m), compared to $54.5m (£33.7m) in the same quarter last year and $81.9m (£50.7m) in the fourth quarter. Its operating profit in the quarter was 31.3 percent of revenue, compared to 24 percent in the same period last year.
Last quarter, Adobe raked in 46 cents (29p) a share on sales of $281.8m (£174.7m). Its shares moved up to a 52-week high of 106 5/8 in February after falling to a low of 23 5/8 last March.
Out of the 13 analysts tracking the stock, 10 maintain either a "buy" or "strong buy" recommendation.
First Call consensus expects the Adobe to earn $1.90 (£1.18) a share in the fiscal year. Adobe competes with Corel, Microsoft and privately held Quark.
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