Adobe Sales Forecast Beats Estimates With Creative Products Leading
Adobe gave a sales forecast that topped analysts’ estimates, signaling that strong demand for its creative products continues to drive growth, according to Bloomberg.
Revenue in the current quarter will be about $2.42 billion, and profit, excluding some costs, may reach $1.87 a share, the company said in a statement. Analysts projected $2.41 billion in sales and earnings of $1.86 a share.
Adobe’s creative and digital media segment still represents the majority of its revenue. The company projected sales from the unit will increase about 22 percent from a year earlier in the current period. Division sales grew almost 29 percent in the fiscal fourth quarter of 2017.
Revenue from the segment climbed 27 percent to $1.61 billion in the period ended Aug. 31. To power future growth, the company has launched more mobile apps to boost its appeal among hobbyists. The software maker has also pursued a strategy to make its traditional apps available on mobile devices, starting with Photoshop next year.
Total revenue increased 24 percent to $2.29 billion in the fiscal third quarter. Profit, excluding some items, was $1.73 a share. Analysts estimated sales of $2.25 billion and adjusted earnings of $1.69 a share.
Sales from the company’s experience cloud unit, which includes marketing, data and e-commerce programs, increased 21 percent to $614 million. The division got a boost from Adobe’s acquisition of Magento in June, which is supposed to match Salesforce’s software that helps manage online commerce.