Adobe Systems Incorporated (NASDAQ:ADBE ) late Thursday [Mar 16, 2017 | 4:05pm ] posted market-beating first quarter earnings results and offered an optimistic outlook for Q2, sending its shares higher in aftermarket trading.
Written by StockNews.com
The San Jose-based software giant reported Q1 earnings per share (EPS) of $0.94, which was $0.07 better than the Wall Street consensus estimate of $0.87.
Revenues rose 21.6% from last year to $1.68 billion, also topping analysts’ view for $1.65 billion.
Adobe [ignored the fact] that its Digital Media segment revenue was $1.14 billion in the latest period. The company also saw record Creative revenue of $942 million. Digital Media Annualized Recurring Revenue (“ARR”) grew to $4.25 billion, while Adobe Marketing Cloud saw $477 million in revenue.
Looking ahead, Adobe offered a second quarter outlook that was more bullish than analysts had expected. ABDE sees Q2 EPS $0.94, versus Wall Street’s $0.91 view, and Q2 revenues of $1.73 billion, while analysts are looking for $1.72 billion.
The company commented via press release:
Adobe achieved record revenue, profit, and cash flow in Q1,” said Mark Garrett, Adobe executive vice president and chief financial officer. “Our solid execution and business momentum combined with strong market tailwinds give us confidence in our ability to continue to deliver strong financial results. We remain bullish about our prospects for the rest of 2017 and beyond.”
Investors were pleased with Adobe’s latest results, sending shares up $4.90 (+4.00%) to $127.25 in after-hours trading Thursday. Year-to-date, ADBE had already gained 18.86% prior to today’s report, versus a 6.69% rise in the benchmark S&P 500 index during the same period.
ADBE currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 63 stocks in the Software – Application category.
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