Adobe Systems Inc. (NASDAQ:ADBE)
Adobe Systems Earnings and Technicals
On Tuesday after the market closed, Adobe Systems (ADBE) announced quarterly earnings that topped analyst estimates, but shares sold off anyways in the post market session. The company announced adjusted earnings per share at 71 cents on $1.4 billion in revenues while analysts were looking for 68 cents per share on $1.4 billion in revenues. Currently analysts have an average price target of $110.09.
Despite topping analyst estimates, shares took a dump in the post market to lows of $94.40 after closing the day at $99.72, equaling a 5.3% drop in value. Shares should find some support however at the $93 and $92.50 levels, followed up by $90 acting as a big level of support with a daily pivot level there and the 200-day moving average.
Shares will see some resistance at $96 and $97 should they try to make a move back up. Looking back on the daily chart, you will see shares have made a strong come back after hitting yearly lows at $71.27 back in February, so we’ll have to see where traders want to bring prices tomorrow after this big post-earnings move.
Executive Comments
“Adobe’s cloud solutions are powering digital transformation at the world’s biggest brands, educational institutions and government agencies,” said Shantanu Narayen, Adobe president and chief executive officer. “Our record revenue reflects our market leadership and the exploding demand for digital experience solutions.”
“Record revenue with strong profit and cash flow highlight our second quarter results,” said Mark Garrett, Adobe executive vice president and chief financial officer. “Based on our first half performance and momentum, we’re on track to meet or exceed all of our annual fiscal year 2016 targets.”
ABDE Profile
Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. This segment’s flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company’s Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized.
This segment provides analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, and audience management solutions, as well as video delivery and monetization to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Print and Publishing segment offers products and services, such as eLearning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses.
The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. Adobe Systems Incorporated has a strategic partnership with comScore, Inc. The company was founded in 1982 and is headquartered in San Jose, California.