Dallas, Texas 12/16/2013 (FINANCIALSTRENDS) – Adobe Systems Incorporated (NASDAQ:ADBE) announced results from its 4Q operations on December 12 after the markets closed for the day. Post the announcement the stock of this $30 billion market capped tech firm rallied hard to post a super impressive 12.78% increase in its market value in one single day of trading on December 13. At close of business on December 13, the stock price was trading at $60.89 per share which has taken it 5% above its prior 52 week high price points.
This surge in the stock of Adobe Systems Incorporated (NASDAQ:ADBE) was based on solid results from its 4Q operations. Its earnings per share for the quarter have come in at $0.32 which was almost a 50% dip from its previous quarter earnings. It also forecasted earnings per share for its first quarter of FY14 to come in between $0.22 and $0.28 which was well below analyst estimates.
In spite of these not so impressive call out numbers in terms of earnings, the investors backed the company at the browsers thanks to its continued success in transforming its business model which previously was based on customer owned software licenses to a subscription based model which will entail customers paying Adobe Systems Incorporated (NASDAQ:ADBE) only for services they use on a per user basis.
Readers should note that the world’s most popular graphics software provider has been more successful than its bigger competition like German software maker SAP AG (ADR) (NYSE:SAP) and Oracle Corporation (NYSE:ORCL) which have been struggling to adjust their revenue streams to the changing customer inclination towards subscription based pricing model.
Adobe Systems Incorporated (NASDAQ:ADBE) Chief Executive Officer, President and Director Shantanu Narayen was quoted to have commented, “We continued to make great progress with our Creative Cloud service. As of the end of Q4, Creative Cloud adoption grew to over 1.4 million subscriptions, exceeding our original target of 1.25 million for the year”.
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