Adobe Systems Q3 Profit Tops Street

(RTTNews) - Enterprise software maker Adobe Systems Inc. (ADBE), Tuesday reported an increase in profit for the third 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 third-quarter profit rose to $419.6 million or $0.84 per share from $270.8 million or $0.54 per share last year.

Adjusted earnings for the quarter rose to $1.10 per share from $0.75 per share last year. On average, 29 analysts polled by Thomson Reuters expected earnings of $1.01 per share for the quarter. Analysts' estimates typically exclude special items.

Adobe said its revenue for the quarter rose to $1.84 billion from $1.46 billion last year. Analysts had a consensus revenue estimate of $1.82 billion for the quarter.

Digital Media segment revenue was to $1.27 billion, with Creative revenue growing to 1.06 billion, Adobe said in a statement.

"Adobe delivered another record quarter with stellar year-over-year revenue growth of 26 percent," said Shantanu Narayen, president and CEO, Adobe. "The imperative to deliver intelligent, intuitive and effective customer experiences is key to the C-suite agenda of digital transformation, and Adobe's cloud offerings are critical to that business mandate."

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 revenue of $508 million for the quarter, a 26 percent growth from last year.

ADBE closed Tuesday's trading at $156.60, up $0.83 or 0.53% on the Nasdaq. The stock, however, dropped $4.76 or 3.04% in the after-hours trading.