Adobe Systems Inc. (NASDAQ: ADBE) reported fiscal 2017 second quarter results after markets closed Tuesday. The software company reported adjusted earnings per share (EPS) of $1.02 on record quarterly revenue of $1.77 billion. In the same period a year ago, the company reported adjusted EPS of $0.71 on revenue of $1.4 billion. Second-quarter results compare to consensus estimates for EPS of $0.95 and $1.73 billion in revenue.
On a GAAP basis, EPS totaled $0.75 and did not include $0.23 per share in stock-based compensation, $0.07 per share for amortization of purchased intangibles, and an addition of $0.03 per share for income tax adjustments.
The consensus estimates for the third fiscal quarter of 2017 call for EPS of $0.97 on revenues of $1.8 billion. For the full 2017 fiscal year, analysts are looking for EPS of $3.95 on revenues of $7.17 billion. Adobe did not provide guidance in its press release.
The company said that digital media segment revenue totaled $1.21 billion with Creative revenue accounting for $1.01 billion of the total. Creative and Document Cloud revenues rose $312 million sequentially, and Experience Cloud revenues jumped 29% to $495 million.
Adobe CEO Shantanu Narayen said:
Digital transformation continues to be the burning agenda for creative professionals, enterprises, governments and educational institutions. Adobe is the go-to company for creating world-class digital customer journeys from design to delivery to measurement and monetization.
Executive vice-president and CFO Mark Garrett added:
Adobe continues to execute well, with another quarter of record revenue and operating profit in Q2. We’re excited about the strong business momentum we have as we enter the second half of fiscal 2017 and remain confident in our ability to drive strong revenue and earnings growth in the future.
Adobe repurchased about 2 million shares in its second fiscal quarter, returning about $266 million in cash to shareholders. The company does not pay a dividend.
The company’s shares traded up about 4% in after-hours trading, at $146.50, above the 52-week range of $90.35 to $144.34. The consensus price target on the stock is $146.54.