Strong quarter for Adobe

Article Excerpt

ADOBE INC. $358 is buy. The company (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 457.8 million; Market cap: $163.9 billion; Price-to-sales ratio: 9.5; No dividends paid since June 2005; TSINetwork Rating: Average; makes software that lets computer users create, edit and share documents in the popular PDF format. It also makes a variety of electronic-publishing programs. Adobe’s decision a few years ago to switch to selling its programs as ongoing subscriptions instead of one-time purchases continues to pay off for investors: In its fiscal 2022 fourth quarter, ended December 2, 2022, revenue rose 10.1%, to a record $4.53 billion from $4.11 billion. Earnings climbed 12.5%, to $3.60 a share from $3.20 a year earlier. The company is now buying collaboration-software company Figma for around $20 billion. Figma specializes in cloud-based collaboration tools that aim to help teams better create and build web applications. The acquisition expands Adobe’s online collaboration tools amid a global shift to hybrid working. Adobe is a..