Adobe fiscal 1Q beats Wall Street estimates
Shares of software maker Adobe Systems Inc. rose nearly 6 percent in after-hours trading Tuesday after its fiscal first quarter results topped analysts' expectations.
Adobe makes popular software like Adobe Reader and Photoshop. The company has been shifting its business to a subscription format and said it gained 153,000 Creative Cloud subscriptions over the three months ended March 1, as the pace of new subscriptions increased.
Creative Cloud offers online versions of Adobe software products through subscriptions, instead of a download or physical package, at lower cost. The company said it had 479,000 subscriptions at the end of the quarter and now has more than 500,000 subscribers.
Net income fell 65 percent, to $65.1 million, or 13 cents per share, from $185.2 million, or 37 cents per share, on greater expenses and one-time items like amortization costs. Excluding special items Adobe made 35 cents per share. Revenue fell 4 percent, to $1.01 billion. Product sales fell 16 percent to $675.8 million, but subscription revenue and service and support revenue improved.
Analysts forecast net income of 31 cents per share on $985.2 million in revenue, according to FactSet.
Adobe shares rose $2.30, or 5.6 percent, to $43.05 in after-hours trading. The stock has been trading around its highest level since mid-2007.