Adobe 2Q Profit Beats Wall Street View
Adobe Systems Inc. (NASDAQ:ADBE) posted fiscal second-quarter profit that topped analyst expectations and the company gave guidance that was in-line with the Streets view.
Adobe, well known for its Flash and Creative Suite software, backed its 10% revenue growth projection for fiscal 2011, and the company forecast fiscal third-quarter adjusted earnings in the range of 50 to 56 cents a share on revenue between $1.0 billion to $1.05 billion. Analysts had predicted earnings of 54 cents a share on revenue of $1.02 billion.
In the second quarter, the software giant weighed in with a profit of $229.4 million, or 45 cents a share, compared with year-ago profit of $148.6 million, or 28 cents a share. Adjusted earnings improved to 55 cents a share, up from last years second-quarter earnings of 44 cents.
Revenue rose 8.5% to $1.02 billion, up from $943.04 million in 2010. Operating margin widened to 27%, up from 24.1% during the quarter.
Analysts had predicted adjusted earnings of 51 cents a share on revenue of $994.78 million, according to a poll by Thomson Reuters.
"Our strong Q2 performance demonstrates our strategy of enabling users to make, manage and measure great digital experiences is resonating with our customers," said Shantanu Narayen, president and CEO of Adobe, in a statement.
Shares of Adobe fell 54 cents, or 1.69%, in after-hours trading, after rising $1.06, or 3.42%, to $32.01, ahead of Tuesdays results.