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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Digital Experience segment revenue was up 17% to $1.10 billion, with digital experience subscription revenue up 18% to $961 million.<\/p>\n
“Adobe achieved record Q2 revenue with strong demand across Creative Cloud, Document Cloud and Experience Cloud,” said Shantanu Narayen, chairman and CEO, Adobe. <\/p>\n
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.<\/p>\n
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.<\/p>\n
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. <\/p>\n