Shares of Adobe (NASDAQ: ADBE) shot higher in after-hours trading after the company announced better-than-expected second quarter results.
Revenue toppled the analyst estimate by 3.9 percent at $1.07 billion versus $1.03 billion. This is a 5.9 percent increase from the same period a year ago. Growth was led by subscription revenue, which increased from $254.5 million in 2013 to $476.7 million in 2014. Creative cloud subscribers are up 464,000 quarter over quarter to 2.3 million.
Earnings beat Wall Street's expectations by 23.3 percent at $0.37 per share versus $0.30. Analysts had low expectations for the quarter; the figure is up just $0.01 year over year.
2.6 million shares were purchased during the quarter, returning $166 million to shareholders.
Looking forward CEO Shantanu Narayen commented that the company expects a strong second half of the year. In presentation slides published on Adobe's website, the company revealed expectations of $2 of EPS in 2015 and more than $3 of EPS in 2016. This compares to TTM EPS of $1.31.
Shares of Adobe were last trading up 6.6 percent after-hours to $72.
Original headline: Adobe Shoots Higher On Q2 Report, Guidance
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