Topic: How To Invest

Stock Pickers Digest Hotline – Friday, March 17, 2017

Article Excerpt

ADOBE SYSTEMS INC., $127.01, symbol ADBE on New York, makes software that lets computer users create, edit and share documents in the popular PDF format. 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 first quarter, ended March 3, 2017, Adobe earned $0.94 a share excluding unusual items. That beat the consensus estimate of $0.87. The latest earnings are also up 42.4% from $0.66 a share a year earlier. Revenue jumped 21.6%, to $1.68 billion from $1.38 billion. That also exceeded the consensus forecast of $1.65 billion. The company continues to move away from the sale of software as a one-time purchase; it now gets 85% of its revenue from recurring sources (subscriptions). Adobe spends a high 17% of its sales on research. The investment helps it compete in a rapidly changing industry. It also gets about 40% of its revenue from Europe and Asia, and the high U.S….