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Adobe Systems Incorporated Stock Falls Despite Q2 Record Revenue

ADBE stock fell more than 2.5% after hours

By Karl Utermohlen, InvestorPlace Writer

http://bit.ly/2sXxEf4

Adobe Systems Incorporated (NASDAQ:ADBE) reported strong quarterly earnings results during its latest period, which included a record revenue haul for a single quarter.

Adobe Systems IncorporatedThe Photoshop maker experienced a 24% increase in revenue compared to the year-ago quarter for its fiscal second quarter of 2018, marking sales of $2.2 billion. The figure was ahead of the company’s own forecast of $2.15 billion, while also surpassing the Wall Street consensus estimate of $2.16 billion, according to data compiled by Thomson Reuters.

Adobe Systems Incorporated added that its net income for the period came in at $663.2 million, a 77% gain compared to the year-ago quarter. On an adjusted basis, diluted earnings surged to $1.33 per share, ahead of its year-ago total of 75 cents per share.

Wall Street was calling for net income of $602.1 million, or $1.20 per diluted share, according to data compiled by Thomson Reuters. Adobe Systems Incorporated’s Document Cloud division posted revenue of $243 million, which marked a 22% surge compared to the company’s year-ago period.

Back in January, the company said it projected full-year revenue of $8.725 billion and adjusted earnings of $5.50 per share. Analysts are more optimistic than the company as it sees sales of $8.8 billion and adjusted earnings of $6.46 per share.

Adobe Systems Incorporated added that it forecasts third-quarter revenue of $2.24 billion, slightly ahead of analysts’ outlook of $2.23 billion in sales.

ADBE stock gained 0.8% during regular trading hours, but fell more than 2.7% after the bell Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/06/adobe-systems-incorporated-adbe-4/.

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