Adobe Q2 Profit Tops Wall Street

(RTTNews) - Enterprise software maker Adobe Systems Inc. (ADBE), Tuesday reported an increase in profit for the second quarter, as revenues rose reflecting strong cloud revenue growth. The Photoshop maker's earnings topped Wall Street estimates as did revenues.

San Jose, California-based Adobe's second-quarter profit rose to $374.4 million or $0.75 per share from $244.1 million or $0.48 per share last year.

Adjusted earnings for the quarter rose to $1.02 per share from $0.71 per share last year. On average, 28 analysts polled by Thomson Reuters expected earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude special items.

Adobe said its revenue for the quarter rose to $1.77 billion from $1.40 billion last year. Analysts had a consensus revenue estimate of $1.73 billion for the quarter.

Digital Media segment revenue rose to $1.21 billion, with Creative revenue growing to a record 1.01 billion, Adobe said in a statement.

CFO Mark Garrett said, "Adobe continues to execute well, with another quarter of record revenue and operating profit in Q2. We're excited about the strong business momentum we have as we enter the second half of fiscal 2017 and remain confident in our ability to drive strong revenue and earnings growth in the future."

Adobe has been focusing on cloud based subscriptions to boost revenue. Its Creative Cloud software as a service offering gives users access to a range of its software, for a monthly or annual subscription. Customers prefer the cloud route instead of buying individual products and software suites for a licensee fee.

Adobe Experience Cloud achieved record revenue of $495 million for the quarter, a 29 percent growth from last year.

ADBE closed Tuesday's trading at $140.91, up $0.56 or 0.40%, on the Nasdaq. The stock further gained $4.84 or 3.43% in the after-hours trade.