The Trigger For Adobe Systems Incorporated (NASDAQ:ADBE)
Adobe Systems Incorporated (NASDAQ:ADBE)’s upside 4Q13 surprise in subscription revenue helped it marked a fresh high of $61.09 on Friday before the stock closed at $60.89. More than 15.8 million shares get traded on Friday, against its 30 day average volume of 4.08 million shares. Presently the stock is trading almost 73% above its 52 week low of $35.19 and 27.54% above its 200 day simple moving average.
Adobe Systems Inc. (NASDAQ:ADBE) has delivered 61.6% returns year to date, overshadowing its peers Autodesk, Inc. (NASDAQ:ADSK) and Microsoft Corporation (NASDAQ:MSFT) which have delivered 35.03% and 37.30% returns, respectively, in the same period.
Adobe Systems Inc. (NASDAQ:ADBE) reported 4Q13 revenues of $1.04 billion which suggest 9.7% year over year revenue decline and around 4.7% increase compared to 3Q13. The company attributed its sequential revenue increase to the fast-tracked adoption of creative cloud subscription pricing model.
Subscription reported the highest 84.9% year over year increase and contributed to 34.5% of total revenue. Services & Support revenue also increased 8.2% on a year over year basis. However, Products which contributed 54.4% of Adobe Systems Inc. (NASDAQ:ADBE)’s total revenue were down 33.5% year over year.
Adobe Systems Inc. (NASDAQ:ADBE) reported 4Q13 gross margin at 85.8% as compared to 89.2% during 4Q12. Moreover the operating expenses for the reported quarter also increased 9.8% to $791.3 million as compared to $720.7 million during a year ago period. Net income for 4Q13 on a GAAP basis was reported at $65.3 million or $0.13 per share as compared to $222.3 million or $0.44 per share in 4Q12.
Adobe Systems Inc. (NASDAQ:ADBE) reported cash and investments balance of $3.17 billion at the end of 4Q13 compared to $3.16 billion at the end of 3Q13.
Adobe Systems Inc. (NASDAQ:ADBE) expects FY14 revenue to remain flat as compared to FY13 and 1Q14 revenues to be in the range of $950 million to $1.0 billion. GAAP earnings for 1Q14 are anticipated to be in the range of $0.02-$0.08 per share.