Why Adobe Systems Incorporated Stock Popped Today

Shares of Adobe Systems Incorporated (NASDAQ: ADBE) were up 11.6% as of 3:30 p.m. EDT Thursday after the creative-software specialist provided strong fiscal 2018 guidance.

More specifically, during an investor meeting at its Adobe MAX user conference, Adobe revealed preliminary fiscal-year 2018 targets for total revenue to increase roughly 20% year over year, to $8.7 billion, assuming digital media segment growth of 23%, Adobe Experience Cloud subscription revenue growth of 20%, and Adobe Experience Cloud total revenue growth of 15%. On the bottom line, that should translate to GAAP earnings per share of approximately $4.40 and adjusted (non-GAAP) earnings per share of roughly $5.50.

By comparison, analysts' consensus estimates had predicted that Adobe would achieve fiscal 2018 adjusted earnings of only $5.21 per share on slightly lower revenue of $8.68 billion.

Source: Fool.com