Free Research Report as Adobe’s Q1 Revenue Growth Outperformed Forecasts
Stock Monitor: SeaChange Intl. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 19, 2018 / Active-Investors.com has just released a free earnings report on Adobe Systems Inc. (NASDAQ: ADBE) ("Adobe"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ADBE. The Company posted its financial results on March 15, 2018, for the first quarter of the fiscal year 2018 (Q1 FY18). The Company's quarterly revenues surged 24% y-o-y, beating market consensus estimates. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Adobe Systems most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the three months ended March 02, 2018, Adobe reported record quarterly revenues of $2.08 billion, which came in above the $1.68 billion recorded at the end of Q1 FY17. The Company's total revenue numbers for the reported quarter also outperformed market expectations of $2.04 billion. The Company's subscription revenues grew to $1.79 billion in Q1 FY18 from $1.38 billion in Q1 FY17. The Company's product revenues were $171.61 million in Q1 FY18 compared to $183.39 million in Q1 FY17. Furthermore, the Company posted services and support revenues of $113.98 million in Q1 FY18 versus $114.41 million in the last year's comparable quarter.
The software maker reported a GAAP net income of $583.08 million, or $1.17 per diluted share, in Q1 FY18, up from $398.45 million, or $0.80 per diluted share, in Q1 FY17. The Company's non-GAAP net income came in at $772.19 million, or $1.55 per diluted share, in Q1 FY18 versus $471.72 million, or $0.94 per diluted share, in Q1 FY17. Meanwhile, market analysts had expected the Company to report non-GAAP diluted earnings per share (EPS) of $1.43.
Operating Metrics
For Q1 FY18, the San Jose, California-based Company posted a GAAP operating income of $702.73 million compared to $469.00 million in past year's same period. Adobe's GAAP operating margin improved to 33.8% in Q1 FY18 from 27.9% in Q1 FY17. The Company's non-GAAP operating income stood at $870.85 million in Q1 FY18 compared to $608.04 million in Q1 FY17. Furthermore, the Company's non-GAAP operating margin improved to 41.9% in Q1 FY18 from 36.2% in Q1 FY17.
Segment Performance
During Q1 FY18, Adobe's Digital Media segment's revenues were $1.46 billion, or 70% of total revenues, compared to $1.14 billion, or 68% of total revenues, in the previous year's corresponding period.
Adobe's Digital Marketing segment's revenues increased to $554.1 million, or 27% of total revenues, in Q1 FY18 from $477.3 million, or 28% of total revenues, in the prior year's same quarter.
Adobe's Print & Publishing segment's revenues came in at $64.3 million, or 3% of total revenues, in Q1 FY18 versus $66.2 million, or 4% of total revenues, in the last year's comparable quarter.
Geographical Contribution
For Q1 FY18, the Company's Americas region's revenues were up to $1.17 billion, or 56% of total revenues, from $975.8 million, or 58% of total revenues, in Q1 FY17. For the reported quarter, Adobe's Europe, Middle-East, and Africa (EMEA) region's revenues stood at $587.2 million, or 28% of total revenues, versus $459.1 million, or 27% of total revenues, in Q1 FY17. Furthermore, the Company's Asia region contributed $321.0 million, or 16%, to Adobe's total revenues in Q1 FY18, up from $246.7 million, or 15% of total revenues, in Q1 FY17.
Cash Flow and Balance Sheet
For the reported quarter, Adobe's net cash provided by operating activities came in at a record of $989.60 million compared to $730.37 million in the year ago corresponding quarter. The Company had a cash and cash equivalents balance of $2.67 billion as on March 02, 2018, compared to $2.31 billion at the close of books as on December 01, 2017. Furthermore, the Company ended the reported quarter with a long-term debt balance of $1.87 billion versus $1.88 billion as on December 01, 2017.
Share Repurchases
For Q1 FY18, the Company repurchased approximately 1.6 million shares, returning $301 million of cash to stockholders in the process.
Guidance
In its outlook for the full year FY18, the Company expects total revenues to be approximately $8.725 billion. The Company's GAAP and non-GAAP EPS are forecasted to be approximately $4.72 and $6.20, respectively, for FY18.
For Q2 FY18, Adobe expects total revenues to be approximately $2.150 billion. Furthermore, the Company's GAAP and non-GAAP EPS are anticipated to be approximately $1.16 and $1.53, respectively, for Q2 FY18.
Stock Performance Snapshot
April 18, 2018 - At Wednesday's closing bell, Adobe Systems' stock marginally fell 0.03%, ending the trading session at $231.10.
Volume traded for the day: 2.24 million shares.
Stock performance in the last month – up 4.01%; previous three-month period – up 17.61%; past twelve-month period – up 78.03%; and year-to-date – up 31.88%
After yesterday's close, Adobe Systems' market cap was at $115.28 billion.
Price to Earnings (P/E) ratio was at 57.62.
The stock is part of the Technology sector, categorized under the Application Software industry.
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