Adobe Results Boosted by Subscription Sales
September 20 2016 - 05:09PM
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 company Chief Financial Officer Mark Garrett said in a prepared
statement that he expected "another record quarter" in the current
three-month period.
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 surveyed by Thomson Reuters 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 16:54 ET (20:54 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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