Adobe Beats Q2 Views

reported better-than-expected earnings for its fiscal second quarter on Tuesday. The San Jose, California-based company posted quarterly earnings of $147.5 million, or $0.29 per share, up from $88.5 million, or $0.17 per share, in the year-earlier period. Excluding one-time items, Adobe's earnings rose to $0.48 per share from $0.37 per share. Its sales climbed to $1.16 billion from $1.07 billion. However, analysts were projecting a profit of $0.45 per share on revenue of $1.16 billion. The average estimate among 29 Estimize users was for earnings of $0.47 per share and revenue of $1.17 billion. Subscription revenue climbed to $774 million from $477 million, while products revenue slipped to $275 million from $479 million. During the quarter, Adobe repurchased approximately 2.6 million shares. "Strong execution against our Creative Cloud, Document Cloud and Marketing Cloud businesses drove record revenue," said Shantanu Narayen, Adobe president and chief executive officer. "We are accelerating the pace of innovation in our Cloud offerings and are thrilled to be launching our best Creative Cloud release to date, which includes Adobe Stock – our new stock content service." Adobe lowered its FY15 sales forecast to $4.845 billion from $4.925 billion. Analysts expected sales of $4.88 billion. However, the company maintained adjusted earnings forecast of 2.05 per share. Adobe expects Q3 adjusted earnings of $0.45 to $0.51 per share and revenue of $1.175 billion to $1.225 billion. Analysts projected earnings of $0.54 per share on revenue of $1.25 billion. Adobe shares slipped 0.99 percent to $79.15 in the after-hours trading session.