Market Overview

Adobe Q3 Profit Beats Views

Share:

Adobe Systems Incorporated (NASDAQ: ADBE) reported better-than-expected earnings for its fiscal third quarter on Thursday.

The San Jose, California-based company posted quarterly net income of $174.5 million, or $0.34 per share, compared to $44.7 million, or $0.09 per share, in the year-ago quarter. Excluding items, Adobe's earnings came in at $0.54 per share.

Its quarterly revenue climbed 21 percent year-over-year to $1.22 billion. However, analysts were expecting earnings of $0.50 per share on revenue of $1.22 billion.

The average estimate among 37 Estimize users was for earnings of $0.51 per share and revenue of $1.22 billion.

Adobe Marketing Cloud revenue rose 27 percent to $368 million.

Its operating income surged 232 percent year-over-year on a GAAP-basis, while operating income gained 90 percent year-over-year on a non-GAAP basis.

Deferred revenue surged to a record $1.31 billion during the latest quarter.

Adobe repurchased around 1.6 million shares during the quarter.

"Our record Q3 financial results set us up for a strong fiscal 2015," said Mark Garrett, Adobe executive vice president and chief financial officer. "Our recurring revenue has reached 73 percent of total revenue, providing a strong foundation for long-term growth."

Adobe expects Q4 earnings of $0.56 to $0.62 per share, on revenue of $1.275 billion to $1.325 billion. Analysts projected earnings of $0.64 per share on revenue of $1.36 billion.

The company also reported a number of organizational changes to its executive leadership team. The company's Senior Vice President David Wadhwani will leave Adobe for a CEO opportunity

Adobe shares gained 2.14 percent to $82.03 in the after-hours trading session.

Posted-In: profitEarnings News Guidance

 

Related Articles (ADBE)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

3 Very Different Reactions To The FOMC Rate Decision

Trader Chatter: 'Fed Put Back In Play', Traders Calling Difference In Yellen's Comments Thursday To Fischer's Jackson Hole Comments "deceptive'