Earnings Review - Adobe Systems

LONDON, January 6, 2015 /PRNewswire/ --

Investor-Edge.com has issued free earnings review on Adobe Systems Inc. (NASDAQ: ADBE). On December 11, 2014, the company reported its Q4 FY14 and full-year FY14 financial results (period ended November 28, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Adobe Systems Inc. (Adobe). During full-year FY14, the company's revenue was $4.147 billion and it generated $1.288 billion in operating cash flow. President and CEO of Adobe, Shantanu Narayen stated that the company had an outstanding 2014. Further, Executive Vice President and CFO at Adobe, Mark Garrett added that FY14 was a pivotal year for Adobe as the company completed its business model transition. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q4 FY14, Adobe's total revenue grew to $1.073 billion from $1.041 billion in Q4 FY13, near the high end of the targeted range of $1.025 billion to $1.075 billion. In Q4 FY14, Adobe's GAAP net income increased to $73.29 million, or $0.14 per diluted share, from $65.32 million, or $0.13 per diluted share, in Q4 FY13. Bloomberg analysts forecasted GAAP net income of $49.80 million, or $0.10 per diluted share, on total revenue of $1.062 billion in Q4 FY14. Adobe generated $399.93 million of cash flow from operations in Q4 FY14. The free research on ADBE can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Adobe%20Systems&d=06-Jan-2015&s=ADBE

In the reported quarter, Adobe added 644,000 net new Creative Cloud subscriptions. During Q4 FY14, the company's Creative Annualized Recurring Revenue (ARR) grew to $1.676 billion, and total Digital Media ARR improved to $1.947 billion. Adobe Marketing Cloud revenue for Q4 FY14 stood at $330 million with record bookings during the quarter. Furthermore, Adobe's deferred revenue in Q4 FY14 grew to a record $1.155 billion, with unbilled backlog rising to approximately $1.7 billion. In Q4 FY14, recurring sources contributed 66% of Adobe's quarterly revenue, compared to 44% contribution in Q4 FY13.

In FY14, Adobe's GAAP net income decreased to $253.55 million, or $0.50 per diluted share, from $289.99 million, or $0.56 per diluted share, in FY13. Analysts at Bloomberg were expecting a GAAP net income of $226.60 million, or $0.49 per diluted share, on total revenue of $4.134 billion in FY14. Sign up and read the free analyst's notes on ADBE at:

http://get.Investor-Edge.com/pdf/?c=Adobe%20Systems&d=06-Jan-2015&s=ADBE

Adobe's Creative Cloud subscriptions grew by more than two million to 3.454 million in FY14. Meanwhile, the company's new Digital Media ARR grew net by more than $1 billion during the year. Adobe Marketing Cloud achieved record annual revenue of $1.170 billion, with record annual bookings, which was above the company's target of 30%. Mr. Narayen stated that Abode's Creative Cloud adoption outpaced expectations and the acquisition of Fotolia will add a vibrant marketplace for customers. He further added that Adobe's Marketing Cloud, the leader in the explosive digital marketing category, continued to drive strong bookings at the world's biggest brands, agencies and media companies.

During Q4 FY14, Adobe repurchased approximately 1.8 million shares, returning $127 million of cash to stockholders. The company repurchased a total of 10.9 million shares in FY14, returning approximately $689 million of cash to stockholders. Visit Investor-Edge and access the latest research on ADBE at:

http://get.Investor-Edge.com/pdf/?c=Adobe%20Systems&d=06-Jan-2015&s=ADBE

Stock Performance  

On the day following the earnings release, December 12, 2014, Adobe's stock rallied 9.00% to end the session at $76.02. The stock has mostly witnessed a negative momentum since then. On the last close, Monday, January 05, 2015, the stock finished at $71.98, 0.50% below its previous day's closing price of $72.34. The stock vacillated between $71.57 and $72.43, and a total of 2.41 million shares were traded, which was below its three months average volume of 3.27 million shares. Over the last one month, the company's shares have fallen by 0.58%. However, the stock has gained 5.23% over the previous three months and 21.67% in the past one year. Shares in Adobe closed above their 50-day and 200-day moving averages of $71.63 and $68.42, respectively. Furthermore, the stock traded at a PE ratio of 139.86 and has a Relative Strength Index (RSI) of 47.36.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 17 insider transactions made by 7 individuals. Between December 10 and December 30, 2014, a total of 86,000 shares have been purchased at an average price of $37.97 per share, for a total value of $3.27 million. During the stated period, 7.96 million shares, worth $595.11 million were also disposed at an average price of $74.72 per share. During the stated period ValueAct Holdings GP LLC, 10% stakeholder in Adobe, disposed 4.58 million shares at $74.75 a share and ValueAct Capital Management LLC, 10% stakeholders in Adobe sold 1.79 million shares at an average price of $74.62 per share. On December 19, 2014, ValueAct Capital Management L.P., 10% stakeholders in Adobe, disposed 1.50 million shares at a price of $74.72 per share. Complimentary in-depth research on ADBE is available at:

http://get.Investor-Edge.com/pdf/?c=Adobe%20Systems&d=06-Jan-2015&s=ADBE

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