Adobe 4th quarter profit up 21 percent on strong sales
BOSTON (Reuters) - Adobe Systems Inc (ADBE.O) posted a 21 percent rise in quarterly profit and issued an earnings forecast above Wall Street estimates on strong sales of software for editing photos, building Web sites and creating graphics.
Shares of Adobe, the world's largest marker of design software, rose as much as 1.5 percent in extended trading after the results but then eased back to trade roughly flat with their Nasdaq close of $40.90.
Adobe said net income for its fiscal fourth-quarter, that ended November 30, rose to $222 million, or 38 cents per share, from $183 million, or 30 cents, a year earlier.
Profit excluding items was 49 cents per share in the quarter ended November 30, beating the average analyst forecast of 48 cents, according to Reuters Estimates.
Quarterly revenue rose 34 percent to $911 million, topping the average analyst estimate of $837 million.
Adobe's outlook for its fiscal first quarter was also above market expectations. The company said it expects first-quarter adjusted earnings per share of 44 cents to 46 cents, ahead of the average Wall Street estimate of 42 cents.
It forecast revenue of $855 million to $885 million and net earnings per share of 34 cents to 36 cents. Wall Street was looking for first quarter revenue of $837 million, according to Reuters Estimates,
Adobe also said its board has approved a 30 million share increase to its stock repurchase program announced in April 2007, bringing the total buyback to 50 million shares.
As of November 30, Adobe had repurchased 17.7 million shares of the original 20 million share authorization.
(Reporting by Jim Finkle; Editing by Tim Dobbyn)
