Adobe Q2 Profit Surges, Tops Street
(RTTNews.com) - Enterprise software maker Adobe Systems Inc. ( ADBE ), Thursday reported an increase in profit for the second quarter, as revenues rose reflecting strong cloud revenue growth. The Photoshop maker's earnings topped Wall Street estimates as did revenues.
San Jose, California-based Adobe's second-quarter profit surged to $663.2 mln or $1.33 per share from $374.4 million or $0.75 per share last year.
Adjusted earnings for the quarter rose to $1.66 per share from $1.02 per share last year. On average, 26 analysts polled by Thomson Reuters expected earnings of $1.54 per share for the quarter. Analysts' estimates typically exclude special items.
Adobe said its revenue for the quarter rose to $2.20 billion from $1.77 billion last year. Analysts had a consensus revenue estimate of $2.16 billion for the quarter.
Digital Media segment revenue rose to $1.55 billion from $1.21 billion, with Creative revenue growing to a record 1.30 billion and and Document Cloud achieving record revenue of $243 million.
"Adobe delivered record revenue with strong earnings and cash flow, and we expect our momentum to continue in the second half of fiscal 2018," said John Murphy, executive vice president and CFO, Adobe.
Adobe has been focusing on cloud based subscriptions to boost revenue. Its Creative Cloud software as a service offering gives users access to a range of its software, for a monthly or annual subscription. Customers prefer the cloud route instead of buying individual products and software suites for a licensee fee.
Digital Experience segment revenue was $586 million, which represents 18 percent year-over-year growth.
ADBE closed Thursday's trading at $258.10, up $1.97 or 0.77%, on the Nasdaq. The stock, however, slipped $7.97 or 3.09% in the after-hours trade.
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