By allowing ads to appear on this site, you support the local businesses who, in turn, support great journalism.
Adobe beats Street 1Q Forecasts
Placeholder Image

SAN JOSE  (AP) — Adobe Systems Inc. shares rose in after-hours trading Thursday after the software developer known for Photoshop, Illustrator and Acrobat posted better-than-expected quarterly results and raised its financial targets.
The company said it earned $254.3 million in its fiscal first-quarter ended March 4. On a per-share basis, the San Jose, California-based company said it had net income of 50 cents. Earnings, adjusted for one-time gains and costs, were 66 cents per share.
The results topped Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 60 cents per share.
The software maker posted revenue of $1.38 billion in the period, which also beat Street forecasts. Seven analysts surveyed by Zacks expected $1.33 billion. Digital media grew by 33 percent to $932 million.
During a conference call with analysts, Adobe executives said they were raising their full-year financial outlook, citing strong results in the digital media business.
The company now expects to earn $2.80 per share on an adjusted basis on revenue of about $5.8 billion. Previously the company expected to earn $2.70 per share on revenue of $5.7 billion. Analysts surveyed by FactSet were forecasting $2.76 per share on revenue of $5.74 billion, on average.
In after-hours trading following the release of the report, Adobe’s stock rose almost 6 percent to $95.20.