What Lit a Fire Under Adobe Shares?

By Chris Lange Updated Jan 11, 4:21PM EST · Published Oct 16, 11:45AM EDT

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Adobe Inc. (NASDAQ: ADBE) shares jumped on Tuesday after the company reaffirmed its guidance and provided a business update at its Adobe Max Creativity Conference. At the event, Adobe’s executive team will discuss the company’s expanded growth opportunities and strategies across each of its major businesses.

Ahead of the event, Adobe is reaffirming its current fourth-quarter revenue and earnings per share (EPS) targets. The company expects to see $1.87 in EPS and $2.42 billion in revenue, which compares to the consensus estimates of $1.89 in EPS and $2.43 billion in revenue.

The company also provided preliminary growth targets for fiscal year 2019, in which it expects to see total revenue growth of 20% year over year, with $1.4 billion of net new annualized recurring revenue in the Digital Media segment and 25% growth in Digital Experience subscription bookings.

Looking ahead to 2019, Thomson Reuters consensus estimates call for $7.84 in EPS and $10.74 billion in revenue.

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Note that these targets do not reflect Adobe’s planned acquisition of Marketo, which the company expects to close during the fourth quarter of fiscal 2018.

Shantanu Narayen, president and CEO of Adobe, commented:

Our strategy of empowering people to create and transforming how businesses compete is leading to larger addressable market opportunities and the potential for accelerated revenue and earnings growth. Our 2019 growth targets reflect our continued momentum and market leadership.

Shares of Adobe were last seen up about 8% on Tuesday to $256.80, with a consensus analyst price target of $290.28 and a 52-week trading range of $148.15 to $277.61.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.