Adobe reported earnings of 48 cents a share for the fiscal second quarter, above analysts' estimates of 45 cents a share for the quarter. Revenue grew 8.8% year over year to $1.16 billion for the quarter, compared to analysts' estimates of $1.162 billion.
Revenue from subscription services grew to $773.9 million in the fiscal second quarter, up from $476.7 million in the year-ago quarter. Revenue from products fell to $274.5 million from $479.2 million and revenue from services and support grew to $113.7 million from $112.3 million in the year-ago quarter.
"Strong execution against our Creative Cloud, Document Cloud and Marketing Cloud businesses drove record revenue," President and CEO Shantanu Narayen said. "We are accelerating the pace of innovation in our Cloud offerings and are thrilled to be launching our best Creative Cloud release to date, which includes Adobe Stock our new stock content service."
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 revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow."