Amid a solid second quarter, Adobe has cut back its fiscal year outlook, due to a weaker demand forecast in Europe.
Adobe reported a net income of US$224 million, or 45 cents a share (statement). Non-GAAP earnings were 60 cents a share on a revenue of US$1.124 billion — a 10 per cent year-over-year increase.
Wall Street was expecting Adobe to report second quarter earnings of 48 cents a share on a revenue of US$1.11 billion. And, for the fiscal year, revenue was expected to be US$4.5 billion, with earnings of US$1.99 per share.
CEO Shantanu Narayen attributed the higher-than-expected earnings to some of Adobe's newer projects, saying:
Our strong Q2 results were driven by the successful launch of Creative Cloud and Creative Suite 6, strong Acrobat revenue and 35 per cent year-over-year revenue growth in our Digital Marketing Suite business. These results demonstrate our leadership in the Digital Media and Digital Marketing markets.
Adobe is predicting a revenue of US$1.075 billion to US$1.125 billion at the end of the third quarter, with non-GAAP earnings between 56 to 61 cents a share.
For the full fiscal year, Adobe cutback on the outlook, with an annual revenue growth target within the range of six to seven per cent, versus its prior target range of six to eight per cent.
Adobe attributed the less optimistic outlook to a weaker demand forecast in Europe.
By the numbers:
- Cash flow from operations was US$448.2 million
- Operating income was US$404.4 million and net income was US$299.6 million on a non-GAAP basis
- Deferred revenue grew by US$43.9 million quarter-over-quarter, to a total of US$592.8 million
- Adobe is targeting its Q3 share count to be between 501 million and 502 million shares.
Via ZDNet US