Adobe results top estimates on higher Creative Cloud subscriptions

(Reuters) - Adobe Systems Inc's earnings and revenue topped Wall Street forecasts for the seventh straight quarter, led by higher subscriptions for its flagship Creative Cloud suite of software that houses Photoshop.

Adobe's shares rose 3.1 percent to $225.64 in after-hours trading on Thursday.

Revenue from Adobe's digital media business that includes Creative Cloud rose about 28 percent to $1.46 billion, beating analysts' average estimate of $1.43 billion, according to Thomson Reuters I/B/E/S.

In October, Adobe hiked subscription fees for Creative Cloud, its largest business by revenue that also houses popular image- and video-editing software such as Premiere Pro and Illustrator.

Adobe's net income rose to $583.1 million or $1.17 per share in the first quarter ended March 2, from $398.5 million or 80 cents per share, a year earlier. Excluding one-time items, Adobe earned $1.55 per share, beating analysts' estimates of $1.44.

 

Revenue rose nearly 24 percent to $2.08 billion, ahead of estimates of $2.05 billion.

For the second quarter, Adobe expects adjusted earnings of $1.53 per share and revenue of $2.15 billion. Analysts were expecting earnings of $1.51 per share and revenue of $2.14 billion.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Sai Sachin Ravikumar)