For the second quarter Adobe reported earnings of 37 cents a share, beating analysts' expectations of 30 cents a share by 7 cents. Revenue grew 5.9% from the year-ago quarter to $1.07 billion, beating the company's guidance of $1 billion to $1.05 billion. Analysts surveyed by Thomson Reuters expected revenue of $1.03 billion for the quarter.
Revenue from Adobe Marketing Cloud grew 23% from the year-ago quarter to $283 million. Cloud services Creative Cloud and Marketing Cloud accounted for 53% of revenue in the quarter.
"Our earnings performance in Q2 reflects the financial leverage we have in our model," executive vice president and CFO Mark Garrett said in a press release. "With Adobe's Creative Cloud transformation behind us, our focus moving forward is to drive strong revenue and earnings growth with our market-leading cloud offerings."
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TheStreet Ratings team rates ADOBE SYSTEMS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ADOBE SYSTEMS INC (ADBE) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."