Topic: How To Invest

Stock Pickers Digest Hotline – Friday, September 23, 2016

Article Excerpt

ADOBE SYSTEMS INC., $107.47, symbol ADBE on Nasdaq, makes software that lets computer users create, edit and share documents in the popular PDF format. Graphic designers also use its programs to create print publications and webpages. The company continues to benefit from strong demand for its subscription services, particularly the Creative Cloud package of photo-editing and desktop-publishing programs. In its fiscal 2016 third quarter, which ended September 2, 2016, the company earned $0.75 a share. That was up 38.9% from $0.54 a year earlier. It’s also better than the consensus estimate of $0.73. Revenue jumped 20.2%, to a record $1.46 billion from $1.22 billion. It, too, beat its consensus forecast of $1.45 billion. Adobe continues to move away from selling software as a one-time purchase; it now gets 83% of its revenue from recurring sources (subscriptions). In the latest quarter, revenue from the company’s Creative Cloud service jumped 39% from a year earlier. As well, revenue from its Marketing Cloud service—software to make…