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Shares in Adobe Systems advanced in extended trading on Thursday after the software company, known for its flashplayer and image editor Photoshop, issued an upbeat sales outlook and posted better-than-expected first quarter results.
Adobe shares advanced 4 per cent in after-hours trade after the company said it is targeting revenue of about $1.73bn in the current quarter on adjusted earnings of 94 cents a share. That was ahead of consensus Wall Street estimates of $1.71bn and 90 cents.
That accompanied fiscal first quarter results that topped expectations. Profits rose to $398.4m, or 80 cents a share, in the three months ended March 3, compared with $254.3m, or 50 cents a share, in the year ago period. Adjusting for one-time items, earnings of 94 cents eclipsed the 87 cents that analysts on Wall Street were looking for.
Revenues climbed nearly 22 per cent to a record $1.68bn, above forecasts of $1.65bn.
Adobe has been moving away from a traditional software licensing model to a cloud-based subscription model. Its shares have climbed nearly 19 per cent so far this year following a 9.6 per cent advance last year.