Shares of Adobe Systems Inc. (NASDAQ: ADBE) hit all-time highs following its most recent earnings report, released after the markets closed on Thursday. It’s worth pointing out that the stock was driven higher largely due to the fact that these revenues were at record levels.
The company said that it had $1.55 in earnings per share (EPS) on $2.08 billion in revenue, compared with consensus estimates that called for $1.43 in EPS and revenue of $2.04 billion. The fiscal first quarter of last year reportedly had EPS of $0.94 and $1.68 billion in revenue.
During the quarter, the firm reported, its Digital Media segment revenue was $1.46 billion, with Creative revenue growing to $1.23 billion and Document Cloud achieving revenue of $231 million.
Digital Media annualized recurring revenue (ARR) grew to $5.72 billion exiting the quarter, a quarter-over-quarter increase of $336 million. Creative ARR grew to $5.07 billion, and Document Cloud ARR grew to $647 million.
The company did not issue any guidance. The consensus estimates call for $1.51 in EPS on $2.14 billion in revenue for the fiscal second quarter. For the fiscal full year, the consensus estimates are $6.28 in EPS on $8.77 billion in revenue.
On the books, Adobe cash, cash equivalents and short-term investments totaled $6.15 billion at the end of the period, up from $5.82 billion in the same period from last year.
Shantanu Narayen, president and CEO of Adobe, commented:
Adobe’s outstanding growth is driven by enabling our customers to be more creative, work smarter and transform their businesses through our relentless focus on delivering innovation and intelligence across our solutions.
Mark Garrett, executive vice president and chief financial officer, added:
Our leadership in the large addressable markets we created, combined with Adobe’s leveraged operating model, contributed to another record quarter in Q1.
Shares of Adobe were last seen up more than 3% at $226.00, with a consensus analyst price target of $220.38 and a 52-week range of $124.51 to $228.86.