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Adobe Q2 profit $632.6 million

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Christian Fernsby ▼ | June 19, 2019
Adobe Systems   Adjusted earnings for the quarter rose to $1.83 per share

Adobe reported a profit and revenues for the second quarter that trumped Wall Street estimates. However, outlook for the third quarter were below current expectations.

San Jose, California-based Adobe's second-quarter profit dropped to $632.6 million or $1.29 per share from $663.167 million or $1.33 per share last year.

Adjusted earnings for the quarter rose to $1.83 per share from $1.66 per share last year. On average, 28 analysts polled by Thomson Reuters expected earnings of $1.78 per share for the quarter. Analysts' estimates typically exclude special items.

Adobe said its revenue for the quarter rose 25% to $2.74 billion from $2.20 billion last year. Analysts had a consensus revenue estimate of $2.70 billion for the quarter.

Digital Media segment revenue jumped 22% to $1.89 billion, with Creative revenue growing to $1.59 billion and Document Cloud achieving revenue of $296 million, Adobe said in a statement.

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.

Digital Experience segment revenue rose 34% to $743 million.

Looking forward to the third quarter, Adobe expects revenues of about $2.80 billion and adjusted earnings of $1.95 per share. Analysts currently estimate earnings of $2.05 per share and revenues of $2.83 billion.

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