Adobe Earnings Rise
June 21 2016 - 6:30PM
Dow Jones News
Adobe Systems Inc. reported better-than-expected earnings for
its latest quarter as subscription revenue climbed, but the
company's full-year guidance disappointed investors.
The California company, known for its flash player used to view
web content and for its publishing software Photoshop, has
benefited from growing demand for digital media. Over the past 12
months, shares in Adobe have gained 25% through Tuesday's
close.
Despite a 20% jump in second-quarter sales and
better-than-expected earnings results, the company's stock slid
4.1% in after hours trading. After lifting its view for the year on
the heels of the prior quarter's results, Adobe reiterated that
guidance Tuesday. The reiteration instead of another boost to
guidance fell short of expectations, though the company said it
might wind up topping current forecasts.
"Based on our first-half performance and momentum, we're on
track to meet or exceed all of our annual fiscal year 2016
targets," said Chief Financial Officer Mark Garrett. Those targets
include $2.80 in adjusted earnings per share and $5.8 billion in
sales. Analysts surveyed by Thomson Reuters have been looking for
$2.84 in adjusted per-share profit with $5.83 billion in
revenue.
For the latest quarter, Adobe posted earnings of $244.1 million,
up from $147.5 million a year earlier. On a per-share basis,
earnings rose to 48 cents from 29 cents. Excluding stock-based
compensation, among other items, earnings per share rose to 71
cents from 48 cents. Analysts had predicted 68 cents in adjusted
earnings per share.
Revenue rose to $1.4 billion, matching analysts' expectations. A
28% decline in product revenue was offset by a 40% surge in
subscription revenue.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
June 21, 2016 18:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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