Why Adobe Systems Incorporated (ADBE) Stock Is Soaring Today

Adobe Systems Incorporated (NASDAQ:ADBE) unveiled its latest quarterly earnings guidance Thursday.

Adobe Systems Incorporated (ADBE)The company revealed that it expects revenue to be about $8.7 billion for fiscal 2018, marking a 20% increase compared to its fiscal 2017 sales, also topping Wall Street’s consensus estimate of $8.6 billion, according to data compiled by FactSet.

In the earnings front, Adobe expects profit to be $5.50 per share on an adjusted basis, higher than analysts’ projections of $5.21 per share, also based on data compiled by FactSet.

Its cloud bookings are slated to grow 20% compared to the year-ago period. The forecast reflects “our continued momentum and leadership,” CEO Shantanu Narayen said in a statement.

For its fourth quarter, Adobe said it’s on track to garner revenue of $1.95 billion, in line with analysts’ consensus estimate of $1.95 billion, according to FactSet. Earnings will come in at $1.15 per share, the company says, below analysts’ prediction of $1.16 per share.

Adobe also provided more details regarding its Sensei AI platform this week at its Max conference. The concept was introduced about a year ago.

“When one of the very best artists in Photoshop spends hours in creation, what are the other things they do and maybe more importantly, what are the things they don’t do?” said Adobe CTO Abhay Parasnis in a press conference. “We are trying to harness that and marry that with the latest advances in deep learning so that the algorithms can actually become partners for that creative professional.”

ADBE stock gained 12.1% Thursday.

Article printed from InvestorPlace Media, https://investorplace.com/2017/10/adobe-systems-incorporated-adbe/.

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