Adobe Posts Strong Earnings Report, Driven by Cloud Demand (12-Year Chart)

 In Blog

Photo: Adobe

Reuters — Adobe Systems Inc reported better-than-expected quarterly revenue and profit, as the demand for its Creative Cloud package of software tools, which includes Photoshop, continued to rise.

Shares of the company were up 3.6 percent at $126.77 in extended trading on Thursday.

Adobe, has benefited from its shift to a more predictable revenue stream by selling its software through web-based subscriptions, as opposed to revenue earned through the sale of packaged-licensed software.

This shift has helped the company post double-digit revenue growth in the past seven quarters.

With the change in Adobe’s business model, it was expected that not only would its profit margins improve over time but especially their cash flow as well, Griffin Securities analyst Jay Vleeschhouwer said.

The California-based company’s cash flow from operations rose nearly 47 percent to $730.37 million.

Revenue from the company’s digital media business, which houses Creative Cloud, came in at $1.14 billion, beating estimates of $1.11 billion, according to market research firm FactSet StreetAccount.

Creative Cloud, which is the company’s largest business by revenue, includes popular software such as, Photoshop, Illustrator and web video building application Flash.

The company’s net income rose to $398.45 million, or 80 cents per share, in the first quarter March 3, from $254.31 million, or 50 cents per share, a year earlier.

ADBE 12-Year Chart:

Total revenue increased, for the twelfth straight quarter, to $1.68 billion from $1.38 billion. Analysts on average were expecting revenue of $1.65 billion, according to Thomson Reuters I/B/E/S.

Excluding items, Adobe earned 94 cents per share, beating estimates of 87 cents per share.

Adobe also forecast an adjusted profit of about 94 cents per share on revenue of about $1.73 billion for the second quarter.

Analysts were expecting a profit of 91 cents per share and revenue of $1.72 billion.

For more SRC Chart Insights & the latest market trends and topics, be sure to sign up for free at and follow us on Facebook @srcstockcharts & on Twitter @SRC_StockCharts

Join Securities Research Company’s Community of institutional, professional and individual investors.  By signing up today, you will receive free membership benefits including access to the PDF e-Books to SRC’s Dow Jones Charts for the Dow 65, SRC’s 2017 Wall Charts, and “How to Use SRC Chart’s in Pursuit of Profits”.

Questions? We can help put a print and online charting package together that is customized just for you! For more information, please contact Alex Uribarri at (508)-832-4509 x2. Or email him directly at

Disclaimer: Articles contained within are for informational purposes only and do not constitute investing advice.
Recent Posts

Leave a Comment