Adobe forecasts FY18 profit above estimates, shares surge


(Reuters) – Photoshop maker Adobe Systems Inc forecast better-than-expected revenue and profit for fiscal 2018 due to growth in its cloud business, sending its shares up 8 percent in extended trading.

The company said on Wednesday it expects revenue of $8.7 billion and profit of around $5.50 per share for fiscal 2018.

Analysts were expecting revenue of $8.68 billion and profit of $5.21 per share, according to Thomson Reuters I/B/E/S.

The shift to a cloud-based subscription has brought a more predictable revenue stream for Adobe, by selling its software through web-based subscriptions, and not through the sale of packaged-licensed software.

Adobe said it expects revenue from its digital media unit, which includes Creative Cloud, to be up 23 percent from a year earlier.

The company also said it expects experience cloud bookings, a set of cloud services part of its digital marketing unit, to be up 20 percent from a year earlier.

Adobe said it is on track to achieve its current-quarter revenue and profit forecast.

The company expected an adjusted profit of $1.15 per share and revenue of $1.95 billion for the fourth quarter. Analysts were expecting earnings of $1.16 per share and revenue of $1.95 billion, according to Thomson Reuters I/B/E/S.

Adobe shares were up 8.1 percent at $165.40. Up to Wednesday’s close the stocks had risen 48.6 percent since the beginning of the year.

Reporting by Laharee Chatterjee; Editing by Sriraj Kalluvila and Shounak Dasgupta

Source link

Products You May Like

Articles You May Like

Origins of 2014 militia showdown with U.S. agents recounted in Nevada court
George Clooney makes TV return with 'Catch-22,' two decades after ER
Canada's Trudeau says raised human rights, killings with Philippines' Duterte
Wall Street falls with energy shares; tax angst weighs
As 'Roman J. Israel, Esq.' Denzel Washington explores social injustice

Leave a Reply

Your email address will not be published. Required fields are marked *