Adobe Shoots Higher On Q2 Report, Guidance

Shares of Adobe ADBE shot higher in extended hours trading after the company announced better than expected second quarter results.

Revenue toppled the analyst estimate by 3.9 percent at $1.07 billion versus $1.03 billion. This is a 5.9 percent increase from the same period a year ago. Growth was led by subscription revenue, which increased from $254.5 million in 2013 to $476.7 million in 2014. Creative cloud subscribers are up 464,000 quarter over quarter to 2.3 million.

Earnings beat Wall Street’s expectation by 23.3 percent at $0.37 per share versus $0.30. Analysts had low expectations for the quarter; the figure is up just $0.01 year over year.

2.6 million shares were purchased during the quarter, returning $166 million to shareholders.

Looking forward CEO Shantanu Narayen commented that the company expects a strong second half of the year. In presentation slides published on Adobe's website, the company revield expectations of $2 of EPS in 2015 and more than $3 of EPS in 2016. This compares to TTM EPS of $1.31.

Shares of Adobe were last trading up 6.6 percent after hours to $72.