Adobe Inc (NASDAQ: ADBE) announced its fiscal 2019 second quarter results after markets closed on Tuesday. The digital media and marketing software firm beat analyst expectations on both top and bottom lines, though third quarter guidance came in light.
Shares of the company traded $12.21, or 4.41% in after-hours trading to $288.99 following the results. The stock, which has gained more than 21% since the beginning of the year, ended the regular session up 0.43% to $276.78.
ADBE Earnings & Outlook
Adobe posted net income of $632.6 million, or $1.29 per share in the second quarter, down from $663.2 million, or $1.33 per share in the same period last year. Excluding one-time costs and gains, earnings came to $1.83 per share in the three months ended May 31.
On average, analysts polled by Refinitiv were expecting Adobe to have earned $1.78 per share in 2Q 2019.
Revenue came in at $2.74 billion, an increase of 25% from $2.2 billion in the second quarter of the previous year. Analysts had been calling for revenue of $2.71 billion in 2Q 2019, according to data compiled by Refinitiv.
Revenue from Adobe’s Digital Media segment rose 22% year-over-year to $1.89 billion, while Digital Experience division brought in revenue of revenue of $783.5 million. Analysts expected Digital Media and Digital Experience units to post revenue of $1.86 billion and $777.2 million, respectively.
Meanwhile, its Publishing business posted revenue of $70.6 million in the quarter, surpassing analyst expectations of $66.1 million.
For the current quarter, Adobe expects revenue and adjusted earnings to grow 13% and 22% on a year-over-year basis to $2.8 billion and $1.95 per share, respectively.
Analysts forecasts that the San Jose, California-based firm will post adjusted earnings of $2.05 per share on revenue of $2.83 billion in the period.
Adobe Executive Comments
“Adobe’s continued momentum is being fueled by the explosion of creativity across the globe and the widespread business transformation agenda to deliver engaging customer experiences,” said Shantanu Narayen, president and CEO, Adobe. “With an innovative technology platform, exciting product roadmap and strong ecosystem of partners, we are well positioned for the second half of FY19 and beyond.”
“Adobe delivered another record quarter in Q2,” said John Murphy, executive vice president and CFO, Adobe. “Highlights include 25 percent year-over-year revenue growth, strong net new Digital Media ARR and operating cash flow of $1.11 billion.”
Adobe Inc Profile
Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media.
The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue