Adobe (NASDAQ: ADBE) shares surged to a record level after reporting better than expected results for the fourth quarter. In addition, the company has generated high double-digit growth in full-year revenues. Investors and market pundits are showing confidence in Adobe’s financial performance and business strategies.
This is evident from a sharp rally in Adobe shares in fiscal 2019. Its share price grew more than 3% to an all-time high of $315 after the Q4 earnings beat. The shares are up 35% year to date, extending the three-year rally to 190%. The share price momentum is backed by financial numbers and growth strategies.
Its strong investment potential has also been helping in expanding revenue growth. The company does not offer any dividends. Thus, it is investing entire cash flows in growth opportunities.
Record Financial Numbers Supports Adobe Shares Gains
Adobe reported fourth-quarter revenue of $2.99 billion, up 21% from the year-ago period. The substantial growth in Digital Media and Digital Experience segment drove fourth-quarter revenue growth. On the other hand, the company’s full-year revenue of $11.17 billion rose 24% from the past year period.
“Adobe delivered another year of strong revenue growth and expanding profitability resulting in record earnings,” said John Murphy, executive vice president, and CFO, Adobe. “We are bullish about our opportunities and our ability to continue to deliver strong top- and bottom-line growth.”
Moreover, its fourth quarter and fiscal 2019 earnings grew at a double-digit rate. Consequently, the company reported a record of $4.4 billion in operating cash flow.
Bright Outlook Indicates Further Upside
The company has presented a solid outlook for fiscal 2020. It expects to generate record financial numbers in the coming quarters. It anticipates fiscal 2020 revenue in the range of $13.15 billion, up from $11.17 billion in 2019. The earnings per share are likely to hit a new record level in 2020. Overall, Adobe shares upside momentum are fully backed by its robust financial numbers.