Adobe Systems (ADBE) Tops Q2 EPS by 3c; Says on Track to Meet, Exceed FY16 Expectations
(Updated - June 21, 2016 4:13 PM EDT)
Adobe Systems (NASDAQ: ADBE) reported Q2 EPS of $0.71, $0.03 better than the analyst estimate of $0.68. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.4 billion.
- Digital Media segment revenue grew by 26 percent year-over-year to a record $943 million, with Creative revenue growing 37 percent year-over-year to a record $755 million.
- Strong Creative Cloud and Document Cloud adoption drove Digital Media Annualized Recurring Revenue to $3.41 billion exiting the quarter, a quarter-over-quarter increase of $285 million.
- Adobe Marketing Cloud achieved record revenue of $385 million that represents year-over-year growth of 18 percent.
Executive Quotes
“Adobe's cloud solutions are powering digital transformation at the world's biggest brands, educational institutions and government agencies," said Shantanu Narayen, Adobe president and chief executive officer. "Our record revenue reflects our market leadership and the exploding demand for digital experience solutions.”
“Record revenue with strong profit and cash flow highlight our second quarter results," said Mark Garrett, Adobe executive vice president and chief financial officer. “Based on our first half performance and momentum, we’re on track to meet or exceed all of our annual fiscal year 2016 targets.”
Guidance:
Adobe said it sees Q3 EPS of $0.69 - $0.75 and revenue of $1.42 - $1.47 billion, with the consensus at EPS of $0.71 and revenue of $1.47 billion.
For earnings history and earnings-related data on Adobe Systems (ADBE) click here.