Adobe Systems Earnings: Here’s Why Investors are Buying Shares Now
Adobe Systems Inc. (NASDAQ:ADBE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.45%.
Adobe Systems Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 40% to $0.36 in the quarter versus EPS of $0.60 in the year-earlier quarter.
Revenue: Decreased 10.09% to $1.01 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Adobe Systems Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.34. It beat the average revenue estimate of $1.01 billion.
Quoting Management: “Our Q2 results reflect our leadership position in Digital Media and Digital Marketing,” said Shantanu Narayen, president and chief executive officer, Adobe. “Creative Cloud is revolutionizing the creative process, and Adobe Marketing Cloud is quickly becoming the platform of choice for the world’s leading brands, advertising agencies and media companies.”
Key Stats (on next page)…
Revenue increased 0.31% from $1.01 billion in the previous quarter. EPS increased 2.86% from $0.35 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.35 and has not changed. For the current year, the average estimate has moved down from a profit of $1.46 to a profit of $1.44 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)