Adobe Systems Incorporated (NASDAQ: ADBE) announced the second quarter financial results on Tuesday after market close. Stock price down 4.51% to $95.22 on Wednesday morning.
According to the earnings announcement, Adobe achieved record quarterly revenue of $1.40 billion, representing year-over-year growth of 20%. Diluted earnings per share were $0.48 on a GAAP-basis. Year-over-year operating income grew 78 percent and net income grew 66 percent on a GAAP-basis.
Sales jumped 20% in the second quarter and earnings results was better than expectation, the company’s stock slid 4.1% during after hours trading on Tuesday. After lifting its view for the year on the heels of the prior quarter’s results, Adobe reiterated that guidance Tuesday. The reiteration instead of another boost to guidance fell short of expectations, though the company said it might wind up topping current forecasts.
“Adobe’s cloud solutions are powering digital transformation at the world’s biggest brands, educational institutions and government agencies,” said Shantanu Narayen, Adobe president and chief executive officer. “Our record revenue reflects our market leadership and the exploding demand for digital experience solutions.”
“Record revenue with strong profit and cash flow highlight our second quarter results,” said Mark Garrett, Adobe executive vice president and chief financial officer. “Based on our first half performance and momentum, we’re on track to meet or exceed all of our annual fiscal year 2016 targets.”
Adobe’s outlook the third-quarter total revenue of $1.42-$1.47 billion, implying year-over-year growth of 16.4-20.5%. But the forecast was largely below analysts’ expectation of $1.47 billion. Wall Street analysts expect the company’s revenue to rise between 19-22% over the next four quarters.