Adobe Systems Earnings: Here’s Why the Stock is Rising Now
Adobe Systems Inc. (NASDAQ:ADBE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.86%.
Adobe Systems Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 44.83% to $0.32 in the quarter versus EPS of $0.58 in the year-earlier quarter.
Revenue: Decreased 7.92% to $995 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Adobe Systems Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company missed the mean analyst estimate of $0.34. It missed the average revenue estimate of $1.01 billion.
Quoting Management: “We exceeded one million subscriptions during Q3, demonstrating that the transition to Creative Cloud is happening sooner than expected,” said Shantanu Narayen, president and chief executive officer, Adobe. “We successfully completed the acquisition of Neolane, adding a critical cross-channel campaign management solution to the Adobe Marketing Cloud, which will further extend our leadership position in digital marketing.”
Key Stats (on next page)…