Adobe Q2 better than expected; Outlook solid
Adobe produced strong second quarter earnings figures on Tuesday, reaffirming its path to achieve at least 10 percent in revenue growth by the end of the 2011 fiscal year.
Adobe reported second quarter earnings of $229.4 million, or 45 cents a share (statement). Non-GAAP earnings were 55 a share on a revenue of $1.023 billion. Wall Street was expecting Adobe to report second quarter earnings of 51 cents a share on revenue of $994.8 million.
Adobe's CEO and president Shantanu Narayen boasted about his company's higher-than-expected earnings stating that "our strong Q2 performance demonstrates our strategy of enabling users to make, manage and measure great digital experiences is resonating with our customers."
Key points:
- Creative Suite 5.5 shipped during the second quarter
- Acrobat achieved 17 percent year-over-year growth
- Omniture achieved record revenue with year-over-year bookings growing by more than 20 percen
By the numbers:
- Adobe repurchased 13.7 million shares of stock during the quarter
- Adobe is targeting a share count between 501 million and 503 million
- Cash flow from operations was $389.3 million
For the outlook, Adobe is predicting a revenue of $1 billion to $1.050 billion at the end of Q3 with non-GAAP earnings between 50 to 56 cents a share.
For the third quarter of fiscal 2011, Wall Street is expecting Adobe to report non-GAAP earnings of 54 cents a share on revenue of $1.02 billion. For fiscal 2012, analysts were projecting Adobe to report earnings of $2.22 a share on revenue of $4.1 billion.
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