Adobe (Nasdaq:ADBE) Guidance Surpasses Estimates on Creative Suite Resurgence

Adobe Systems Inc. (Nasdaq:ADBE), the leading developer of graphic-design programs, projected fiscal first-quarter profit that exceeded analysts’ expectations, strengthend by increased sales of their desktop-publishing software.

Minus some costs, profit will be 54 cents to 59 cents a share in the quarter ending in February, Adobe said. Analysts had been looking for 51 cents a share.

Creative Suite 5 is leading the charge for Adobe, which had been anemic earlier in the year. Creative Suite, which is largely used by schools, graphic designers and advertising agencies, includes the popular Photoshop and Illustrator programs.

Sales guidance for the first-quarter was revised upwardly from $1 billion to $1.05 billion. Analysts were looking for just under $1 billion.

Adobe is aware of its need to expand beyond Creative Suite, as it's highly cyclical, based on whenever they turn out a new version, and accounts for the majority of revenue and earnings generated by the company.

One growing segment which could help Adobe is its offerings of digital enterprise services which helps users manage their communications with customers and allows for the sharing and reviewing of documents.

In the latest quarter ending December 3, Adobe had sales of $1.01 billion and earnings of $56 a share, beating the Street estimates of $988.3 million and 52 cents a share. Net income was 53 cents a share or $268.9 million.

Adobe closed at $29.18, up $0.39, or 1.35 percent.