Adobe Systems beats by $0.03, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY15 EPS below consensus, revs below consensus
--> Reports Q2 (May) earnings of $0.48 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.45; revenues rose 8.8% year/year to $1.16 bln vs the $1.16 bln consensus. Digital Media Annualized Recurring Revenue grew to $2.35 billion exiting the quarter, driven by an increase in Creative ARR of $230 million to $2.02 billion.
- Co issues downside guidance for Q3, sees EPS of $0.45-0.51, excluding non-recurring items, vs. $0.54 Capital IQ Consensus Estimate; sees Q3 revs of $1.175-1.225 bln vs. $1.24 bln Capital IQ Consensus Estimate. Q3 Guidance: Expect Digital Media segment revenue to grow on a sequential basis. Expect Adobe Marketing Cloud revenue to grow approximately 21% on a YoY basis
- Co issues downside guidance for FY15, sees EPS of $2.05, excluding non-recurring items, vs. $2.08 Capital IQ Consensus Estimate; sees FY15 revs of $4.845 bln vs. $4.88 bln Capital IQ Consensus Estimate. FY15 Guidance: Expect Digital Media ARR of ~$2.925 billion by FY15 year-end. Expect Adobe Marketing Cloud annual bookings growth of ~30%. Expect Adobe Marketing Cloud second half FY15 YoY revenue growth of ~24%.