Adobe Systems Q2 Results Beat Street View, Outlook Weak; Shares Down 4%
Software giant Adobe Systems Inc. (ADBE), Thursday reported a profit and revenues for the second quarter that trumped Wall Street estimates. However, the company’s shares slipped nearly 4% in extended session based on the company’s outlook.
San Jose, California-based Adobe’s second-quarter profit rose to $1.178 billion or $2.49 per share from $1.116 billion or $2.32 per share last year.
Adjusted earnings for the quarter rose to $3.35 per share from $3.03 per share last year. On average, 24 analysts polled by Thomson Reuters expected earnings of $3.31 per share for the quarter. Analysts’ estimates typically exclude special items.
Adobe said it achieved record revenue in the quarter, which rose 14% to $4.386 billion from $3.835 billion last year. Analysts had a consensus revenue estimate of $4.34 billion for the quarter.
Digital Media segment revenue grew 15% to $3.20 billion, as creative revenue rose 12% to $2.61 billion and document cloud revenue was up 27% to $595 million.
Digital Experience segment revenue was up 17% to $1.10 billion, with digital experience subscription revenue up 18% to $961 million.
“Adobe achieved record Q2 revenue with strong demand across Creative Cloud, Document Cloud and Experience Cloud,” said Shantanu Narayen, chairman and CEO, Adobe.
Looking forward to the third quarter, Adobe expects revenues of about $4.43 billion and adjusted earnings of around $3.33 per share. Analysts currently estimate earnings of $3.40 per share and revenues of $4.51 billion.
For the full year 2022, the company now expects revenues of about $17.65 billion and adjusted earnings of $13.50 per share. Analysts currently estimate earnings of $13.66 per share and revenues of $17.85 billion.
ADBE closed Thursday’s trading at $365.08, down $11.84 or 3.14%, on the Nasdaq. The stock further slipped $13.33 or 3.65% in the after-hours trading.
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