Adobe expects fiscal third-quarter earnings and revenue that are below what analysts were looking for.
shares rose more than 3% after hours on Tuesday after the company announced better-than-expected earnings for the second quarter of its 2019 fiscal year, which ended on May 31, and lighter-than-expected guidance.
$1.83 per share, excluding certain items, vs. $1.78 per share as expected by analysts, according to Refinitiv.Adobe's revenue grew 25% year over year in the quarter, according to aAdobe's largest business segment, Digital Media, which includes the Creative Cloud and Document Cloud products, produced $1.89 billion in revenue, up 22% and above the $1.86 billion consensus estimate among analysts polled by FactSet. The Digital Experience segment, which contains Magento and Marketo, had revenue of $783.5 million, over the FactSet consensus estimate of $777.2 million. The Publishing segment contributed $70.6 million in revenue, above the $66.1 million estimate. In the quarter Adobe reported $7.47 billion in annualized recurring revenue for its Digital Media business. That's above the FactSet consensus of $7.44 billion. "With Digital Media ARR growth coming down from 30%-plus range in the last couple of quarters, investors have begun to question the long-term growth potential of the segment," Stifel analysts led by Tom Roderick wrote in a note distributed to clients on Sunday. "While the potential for seat conversion still remains internationally, we view existing account penetration and new use-cases as the primary seat and ARR growth drivers in the near-term."Adobe said that for the fiscal third quarter, it expects $1.95 in earnings per share, excluding certain items, on $2.80 billion in revenue. Analysts polled by Refinitiv had been looking for $2.05 in earnings per share, excluding certain items, and $2.83 billion in revenue for that period.Executives will discuss the quarterly results with analysts on a conference call at 5 p.m. Eastern time.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hong Kong's leader says she's committed to finishing her term despite calls for her resignationHong Kong's leader Carrie Lam said on Tuesday she is committed to completing her term despite massive protests calling for her resignation.
Read more »
Shanghai: China Pushes Soft Power Through Global Film Festival AllianceInternational festival leaders gather to discuss shared problems – and plans for a shared future.
Read more »
Adobe looks cheap to trade ahead of earningsAs cloud software giant Adobe prepares to issue its earnings report, traders have their eyes on the stock's implied move.
Read more »
Think Tank: Savage x Fenty and Fabletics Drive E-commerce Success With Hyper PersonalizationSavage x Fenty and Fabletics are driving e-commerce success with hyper personalization.
Read more »