Adobe Systems Q3 Profit, Revenues Trump Street View
Software giant Adobe Systems Inc. (ADBE), Tuesday reported a profit and revenues for the third quarter that easily trumped Wall Street estimates. Looking forward, the company issued a fourth-quarter outlook that is expected to beat current estimates.
San Jose, California-based Adobe’s third-quarter profit rose to $1.21 billion or $2.52 per share from $955 million or $1.97 per share last year.
Adjusted earnings for the quarter rose to $3.11 per share from $2.57 per share last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $3.01 per share for the quarter. Analysts’ estimates typically exclude special items.
Adobe said it achieved record revenue in the quarter, which rose 22% to $3.94 billion from $3.23 billion last year. Analysts had a consensus revenue estimate of $3.89 billion for the quarter.
Digital Media segment revenue grew 23% to $2.87 billion, as creative revenue rose 21% to $2.37 billion and document cloud revenue was up 31% to $493 million.
Digital Experience segment revenue rose 26% to $985 million, with digital experience subscription revenue up 29% to $864 million.
“Adobe had another outstanding quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform storytelling, learning and conducting business in a digital-first world,” said CEO Shantanu Narayen.
Looking forward to the fourth quarter, Adobe expects revenues of about $4.07 billion and adjusted earnings of around $3.18 per share. Analysts currently estimate earnings of $3.08 per share and revenues of $4.04 billion.
ADBE closed Tuesday’s trading at $645.89, up $4.60 or 0.72%, on the Nasdaq. The stock, however, slipped $23.51 or 3.64%, in the after-hours trade.
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