Adobe stock rose 17.4% in October
Adobe (ADBE) stock rose 17.4% in October 2017 to close at $175.16. The stock is now trading 78% above its 52-week low of $175.16 and 1.4% below its 52-week high of $177.58.
Adobe was the top gainer in the S&P 500 (SPY) on October 19, 2017, after its management provided strong fiscal 2018 guidance.
Adobe’s management expects its revenues to rise 20% YoY (year-over-year) to $8.7 billion in fiscal 2018, higher than the analyst forecast of ~$8.6 billion. The company expects earnings per share (or EPS) of $5.50 in fiscal 2018, which is 5.0% above the analyst estimate of $5.21.
Digital media estimated to drive revenue growth
Adobe noted that it expects the Digital Media segment to drive revenue growth in fiscal 2018. Revenue from this business vertical is expected to rise 23.0% YoY in fiscal 2018.
The company’s Adobe Experience Cloud subscription service is forecast to rise 20.0% YoY. Total revenues from the Adobe Experience Cloud business segment is estimated to rise 15.0% YoY. Adobe Systems unveiled its new generation of Adobe Creative Cloud.
Investors were optimistic regarding management’s comments about progress in artificial intelligence and the machine learning platform.