Adobe Systems Inc. (ADBE), Tuesday reported a profit and revenues for the first quarter that trumped Wall Street estimates. Moving ahead, the enterprise software maker lifted its full-year 2021 financial guidance.
San Jose, California-based Adobe's first-quarter profit rose to $1.26 billion or $2.61 per share from $955 million or $1.96 per share last year.
Adjusted earnings for the quarter rose to $3.14 per share from $2.27 per share last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $2.78 per share for the quarter. Analysts' estimates typically exclude special items.
Adobe said its revenue for the quarter rose 26% to $3.91 billion from $3.09 billion last year. Analysts had a consensus revenue estimate of $3.76 billion for the quarter.
Digital Media segment revenue jumped 32% to $2.86 billion, with Creative revenue growing 31% to $2.38 billion and Document Cloud surging 37% to $480 million.
Digital Experience segment revenue was $934 million, representing 24 percent year-over-year growth.
"Adobe drove record Q1 revenue and we are raising our annual targets based on the tremendous opportunity across our business and our continued confidence in our global execution," said CEO Shantanu Narayen, president and CEO, Adobe.
Looking forward to the second quarter, Adobe expects revenues of about $3.72 billion and adjusted earnings of $2.81 per share. Analysts currently estimate earnings of $2.70 per share and revenues of $3.70 billion.
For the full year 2021, Adobe now expects revenues of about $15.45 billion and adjusted earnings of $11.85 per share last year. Analysts currently estimate earnings of $11.26 per share and revenues of $15.20 billion.
Previously, the company expected full-year 2021 adjusted earnings of about $11.20 per share on revenues about $15.15 billion.
Separately, Adobe announced that executive vice president and CFO John Murphy intends to retire in 2021 to spend more time with family and friends and focus on philanthropy.
Murphy will stay on as needed to ensure an orderly transition as the company identifies a successor. Adobe will be conducting a search and evaluating internal and external candidates.
ADBE closed Tuesday's trading at $460.20,up $7.79 or 1.72%, on the Nasdaq. The stock further gained $1.42 or 0.31% in the after-hours trade.
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