Adobe Systems (ADBE 252.25, -5.85, -2.27%) slid today despite
reporting upbeat results and issuing solid guidance. However, today's decline
comes after the stock finished yesterday's session at a new record high, extending
this year's gain to 47.3%.
The software company reported above-consensus second quarter earnings of $1.66/share on a 23.9% year/year jump in revenue to $2.195 bln, which also exceeded expectations. Looking ahead, the company expects that earnings for the third quarter will hit $1.68/share while revenue is expected to reach $2.24 bln. The company's guidance is ahead of current market estimates.
Digital Media Segment revenue totaled $1.55 bln, rising 28.1% year/year. Creative revenue checked in at $1.30 bln, representing year/year growth of 28.7%. Document Cloud revenue grew 22% to $243 mln.
Digital Media Annualized Recurring revenue increased by $343 mln on a sequential basis to $6.06 bln. The growth was ahead of guidance for segment sales growth of $330 mln. Creative Annualized Recurring Revenue increased to $5.37 bln while Document Cloud Annualized Recurring Revenue rose to $694 mln.
Operating income jumped 38.6% year/year to $698.48 mln. R&D expense grew 25.0% to $374.13 mln.
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