Adobe Results Boosted by Subscription Sales

By Ezequiel Minaya 

Adobe Systems Inc. reported quarterly results at the top end of its forecast and above Wall Street expectations, propelled by a 41% jump in subscription revenue.

The California company, known for its flash player used to view web content and for its publishing software Photoshop, has benefited from growing demand for digital media. Over the past 12 months, shares in Adobe have gained 24%.

The company's stock climbed 3.2% in after-hours trading to $104 as company Chief Financial Officer Mark Garrett said in a prepared statement that he expected "another record quarter" in the current three-month period.

For the latest quarter, Adobe posted earnings of $270.8 million, up from $174.5 million a year earlier. On a per-share basis, earnings rose to 54 cents from 34 cents.

Excluding certain items, earnings per share rose to 75 cents from 54 cents. Analysts surveyed by Thomson Reuters had predicted 72 cents in adjusted earnings per share, while the company forecast a range between 69 cents and 75 cents.

Revenue rose 20% to $1.46 billion. Analysts had expected $1.45 billion while the company had predicted sales between $1.42 billion and $1.47 billion.

A 34% decline in product revenue slightly offset the surge in subscription revenue.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

September 20, 2016 16:54 ET (20:54 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.