NEW YORK (TheStreet) -- Shares of Adobe Systems (ADBE) - Get Report were falling 3.7% to $76.74 after-hours Tuesday despite the software company's positive first quarter of fiscal 2015 in which it beat analysts' estimates for earnings.

Adobe reported earnings of 44 cents a share for the fiscal first quarter, above analysts' estimates of 39 cents a share. Revenue grew 11% year over year to $1.11 billion for the first quarter, compared to analysts' estimates of $1.09 billion.

The company said that it added 517,000 net new Creative Cloud subscriptions in the first quarter, a 28% increase compared to new subscriptions in the year-ago quarter.

Adobe said that 70% of its first quarter revenue came from recurring sources, up from 52% in the year-ago quarter. Revenue from subscription services grew to $713.4 million from $423.6 million in the year-ago quarter.

"Adobe Marketing Cloud and Creative Cloud continue to be growth engines for Adobe," President and CEO Shantanu Narayen said. "We are excited about today's announcement of the Adobe Document Cloud, which brings innovative new capabilities, including built-in e-signing, to millions of customers."

TheStreet Ratings team rates ADOBE SYSTEMS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ADOBE SYSTEMS INC (ADBE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

You can view the full analysis from the report here: ADBE Ratings Report

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