U.S. Markets close in 1 hr 39 mins

Adobe (ADBE) Promotes Murphy as New Chief Financial Officer

Zacks Equity Research
1 / 3

Valero Energy (VLO) Q3 Earnings Preview: How Are Events Shaping Up?

Valero Energy (VLO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Adobe Systems Inc. ADBE recently announced that John Murphy will be taking up responsibilities as its executive vice president and Chief Financial Officer (CFO), effective Apr 9.

Murphy has succeeded Mark Garrett, who had announced his intent to retire earlier this year. The new CFO will report to Shantanu Narayen, Adobe’s president and CEO.

Murphy formerly worked as chief accounting officer and corporate controller at Adobe, and now has been promoted to CFO. His new responsibilities include taking care of important Business Operations and Pricing, Financial Planning and Analysis, Financial Reporting, Investor Relations, Internal Audit, Payroll, Procurement, SEC Reporting, Tax and Treasury functions.

Management believes that his experience in leadership, extensive background in financial planning, and operations and knowledge of the technology industry will be instrumental in helping the company achieve long-term goals.

The company’s shares have returned 68% in the past year compared with its industry’s rally of 28%.

Q1 Earnings Results & Guidance

Adobe delivered strong fiscal first-quarter 2018 results, wherein revenues of $2.08 billion were above the Zacks Consensus Estimate. Earnings of $1.55 per share were also ahead of the Zacks Consensus Estimate of $1.43. The growth was driven by strong demand for the company’s innovative solutions and products, strength across geographies, and growing subscriptions for its cloud application.

During the first quarter, the company acquired several new creative agreements and most of them included service offering that led to the solid growth of CC. Moreover, increasing net new subscriptions for CC will continue to benefit Adobe.

Additionally, the company is experiencing growing adoption of Acrobat and Adobe Sign, which is continuously contributing to the strong performance of Document Cloud (“DC”).

For the to-be-reported quarter, Adobe projects total revenues of $2.15 billion, in-line with the Zacks Consensus Estimate. Further, management expects GAAP and non-GAAP earnings of $1.16 and $1.53 per share, respectively.

To Conclude

Adobe Systems is one of the largest software companies in the world. Its massive customer base provides it with a distinct competitive edge. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, acquisitions and strong balance sheet.

The company is experiencing robust demand for its product offerings. New and innovative products like Adobe Character Animator, Spark, Lightroom CC, Dimension and XD are bringing in more customers. We expect the growth momentum in cloud to continue, which will expand Adobe’s market share by attracting new customers to its Creative Cloud business.

Adobe Systems Incorporated Price and Consensus

 

Adobe Systems Incorporated Price and Consensus | Adobe Systems Incorporated Quote

Zacks Rank &Stocks to Consider

Adobe carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the technology sector are Stamps.com Inc. STMP, PetMed Express PETS and Agilent Technologies A. While Stamps.com sports a Zacks Rank #1 (Strong Buy), PetMed and Agilent carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings per share growth rate for Stamps.com, PetMed and Agilent is projected to be 15%, 10% and 11.2%, respectively.

Zacks Editor-in-Chief Goes ""All In"" on This Stock

Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

Download it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PetMed Express, Inc. (PETS) : Free Stock Analysis Report
 
Stamps.com Inc. (STMP) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research