Adobe Results Boosted by Subscription Sales -- Update
September 20 2016 - 6:22PM
Dow Jones News
By Ezequiel Minaya
Adobe Systems Inc. reported quarterly results at the top end of
its forecast and above Wall Street expectations, propelled by a 41%
jump in subscription revenue.
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 24%.
The company's stock climbed 3.2% in after-hours trading to $104
as Chief Financial Officer Mark Garrett said in a statement that he
expected "another record quarter" in the current three-month
period.
For the current quarter, Adobe expects revenue between $1.55
billion and $1.60 billion with adjusted earnings on a per-share
basis in the range of 83 cents to 89 cents. Analysts surveyed by
Thomson Reuters expect sales of $1.57 billion and adjusted earnings
of 78 cents.
For the latest quarter, Adobe posted earnings of $270.8 million,
up from $174.5 million a year earlier. On a per-share basis,
earnings rose to 54 cents from 34 cents.
Excluding certain items, earnings per share rose to 75 cents
from 54 cents. Analysts had predicted 72 cents in adjusted earnings
per share, while the company forecast a range between 69 cents and
75 cents.
Revenue rose 20% to $1.46 billion. Analysts had expected $1.45
billion while the company had predicted sales between $1.42 billion
and $1.47 billion.
A 34% decline in product revenue slightly offset the surge in
subscription revenue.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
September 20, 2016 18:07 ET (22:07 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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