ADBE Adobe Inc

   By Maria Armental 
 

Adobe Systems Inc. reported second-quarter results on Thursday. Here's what you need to know:

PROFIT: Net income surged to $663.2 million, or $1.33 a share, from $374.4 million, or 75 cents, a year earlier. Excluding stock-based compensation and other items, profit rose to $1.66 a share from $1.02 a share a year earlier. Analysts surveyed by Thomson Reuters projected $1.54 a share in adjusted profit.

REVENUE: Total revenue rose 24% to $2.2 billion, beating the analysts' consensus of $2.16 billion.

PROFIT MARGIN: Gross profit margin improved to 87.2% from 86.5% a year earlier.

OUTLOOK: This quarter, Adobe expects to make $1.27 a share, or $1.68 a share on an adjusted basis, on about $2.24 billion in revenue. Analysts project profit of $1.27 a share, or $1.61 a share as adjusted, on $2.38 billion in revenue. The company's third-quarter forecast doesn't reflect the Magento Commerce pending acquisition.

COMMENTARY: "Adobe delivered record revenue with strong earnings and cash flow, and we expect our momentum to continue in the second half of fiscal 2018," Chief Financial Officer John Murphy said in a statement.

STOCK MOVE: Shares, which set a $258.91 record Thursday before closing at $258.10, fell 3% to $249.90 in after-hours trading. The stock outperforms the market with a 47% gain this year.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

June 14, 2018 16:57 ET (20:57 GMT)

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