How Analysts View Adobe After Earnings

March 20, 2016 by Chris Lange

Adobe Systems Inc. (NASDAQ: ADBE) released fiscal second-quarter earnings report after the markets closed on Thursday. Overall, investors had a very positive reaction to the report, but analysts had a somewhat mixed view on the stock. We have included some highlights from the earnings report as well as an analyst montage.

The company said it had $0.66 in earnings per share (EPS) on $1.38 billion in revenue. That compared to Thomson Reuters consensus estimates of $0.61 in EPS on revenue of $1.34 billion. In the same period of last year, Adobe posted EPS of $0.44 and $1.11 billion in revenue.

The Digital Media segment revenue grew by 33% year over year to a record $932 million, with Creative revenue growing 44% year over year to a record $733 million.

At the same time, strong Creative Cloud adoption drove Digital Media annualized recurring revenue to $3.13 billion exiting the quarter, an increase of $246 million.