Revenue took off thanks to Adobe’s Creative Suite 6 and Creative Cloud subscription sales, increasing from $1.02 billion last year to $1.12 billion, but higher expenses hurt the company.
For the quarter, Adobe only earned $223.9 million compared with earnings of $229.4 million at the same time last year. Both figures came out to EPS of 45 cents; however, ADBE had more shares outstanding in the previous quarter. Adjusted earnings of 60 cents per share were a cent better than analysts polled by Thomson Reuters expected.
Adobe also adjusted its forecast for the remainder of the year. Shares of Adobe have dropped more than 3% throughout the day, possibly in response to the poor outlook.
The company trimmed its targets for the upcoming third quarter, with projected revenue now coming in at $1.075 billion to $1.125 billion, or 56 to 61 cents per share. Analysts had been looking at the upper end of that estimate, 61 cents per share, on revenue of $1.134 billion.
The full-year earnings outlook was narrowed to a range of $2.40 to $2.46 per share from its prior range of $2.38 to $2.48, while Adobe’s revenue growth target is now a range of 6% to 7% as opposed to the previous range of 6% to 8%.