Adobe Q3 Profit Tops Street - Update

(RTTNews) - Enterprise software maker Adobe Systems Inc. (ADBE), Tuesday reported an increase in profit for the third quarter, as revenues surged 20 percent reflecting cloud revenues. The photoshop maker's earnings topped Wall Street estimates, while revenues came in line with expectations.

San Jose, California-based Adobe's third-quarter profit rose to $270.8 million or $0.54 per share from $174.5 million or $0.34 per share last year.

Adjusted earnings for the quarter rose to $0.75 per share from $0.54 per share last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

Adobe said its revenue for the quarter rose 20 percent to $1.45 billion from $1.22 billion last year. Analysts had a consensus revenue estimate of $1.45 billion for the quarter.

Digital Media segment revenue was a record $990 million, with Creative revenue growing 39 percent year-over-year to a record $803 million, Adobe said in a statement.

CFO Mark Garrett said, @We are expecting another record quarter in Q4, and the leverage in our operating model is reflected in our increase to earnings targets for the year."

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 Marketing Cloud achieved record revenue of $404 million for the quarter.

ADBE closed Tuesday's trading at $100.62, up $0.94 or 0.94%, on the Nasdaq. The stock further rose $3.25 or 3.23% in the after-hours trade.