Enterprise software maker Adobe Systems Inc. (ADBE), Thursday reported a profit and revenues for the fourth quarter that trumped Wall Street estimates.
San Jose, California-based Adobe's fourth-quarter profit rose to $851.86 million or $1.76 per share from $678.24 million or $1.39 per share last year.
Adjusted earnings for the quarter rose to $2.29 per share from $1.83 per share last year. On average, 27 analysts polled by Thomson Reuters expected earnings of $2.26 per share for the quarter. Analysts' estimates typically exclude special items.
Adobe said its revenue for the quarter rose 21% to $2.99 billion from $2.46 billion last year. Analysts had a consensus revenue estimate of $2.97 billion for the quarter.
Digital Media segment revenue jumped 22% to $2.08 billion, with Creative revenue growing to $1.74 billion and Document Cloud achieving revenue of $339 million, Adobe said in a statement.
"Adobe delivered another year of strong revenue growth and expanding profitability resulting in record earnings," said John Murphy, executive vice president and CFO, Adobe. "We are bullish about our opportunities and our ability to continue to deliver strong top- and bottom-line growth."
Adobe has been focusing on cloud based subscriptions to boost revenue. Its Creative Cloud software as a service offering gives users access to a range of its software, for a monthly or annual subscription. Customers prefer the cloud route instead of buying individual products and software suites for a licensee fee.
Digital Experience segment revenue rose 24% to $889 million.
Looking forward to the first quarter, Adobe expects revenues of about $3.04 billion and adjusted earnings of $2.23 per share. Analysts currently estimate earnings of $2.23 per share and revenues of $3.09 billion.
For the full year 2020, Adobe expects revenues of about $13.15 billion and earnings of $9.75 per share last year. Analysts currently estimate earnings of $9.76 per share and revenues of $13.16 billion.
ADBE closed Thursday's trading at $305.96, up $2.22 or 0.73%, on the Nasdaq. The stock further gained $7.54 or 2.46% in the after-hours trade.