Adobe Systems (ADBE) Tops Q1 Estimates

Adobe Systems Incorporated (ADBE) shares are down $2.66, or 3.46%, to $77.00 in the extended session Tuesday after the company reported its first quarter earnings results.

The firm reported non-GAAP earnings of $0.44 per share on revenues of $1.11 billion, up 10.9% from a year ago. Analysts were expecting EPS of $0.39 on revenues of $1.08 billion.

“Fiscal 2015 is off to a strong start, and Q1 revenue and earnings are evidence of successful execution against our strategy,” said in a statement Mark Garrett, Adobe executive vice president and CFO.

On valuation measures, Adobe Systems Inc. shares, which currently have an average 3-month trading volume of 1.93 million shares, trade at a trailing-12 P/E of 150.30, a forward P/E of 24.33 and a P/E to growth ratio of 2.32. The median Wall Street price target on the name is $85.00 with a high target of $98.00. Currently ticker boasts 13 ‘Buy’ endorsements, compared to 9 ’Holds’ and no ‘Sell’.

Profitability-wise, ADBE has a t-12 profit and operating margin of 6.47% and 10.67%, respectively. The $39.70 billion market cap company reported $712.88 million in cash vs. $1.9 billion in debt in its most recent quarter.

ADBE currently prints a one year return of about 16.60% and a year-to-date return of around 7.75%.

The chart below shows where the equity has traded over the last 52 weeks.

Adobe Systems Inc. is a worldwide diversified software operator. The firm was founded in 1982 and is headquartered in San Jose, California.

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