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Adobe: The Poster Child for the Subscription Economy

Adobe is Real Money's Stock of the Day. The computer software company released earnings Tuesday, June 18th, after the market close and beat on both the top and bottom line. Aided by its cloud subscription services and digital media sales, revenue was $2.74 billion versus a $2.7 billion consensus, while earnings per share of $1.83 outpaced expectations of $1.78 per share. RELATED: Adobe Is a Compelling Growth Story at a Reasonable Price However, working to offset the strong fiscal second quarter performance, the company provided guidance that came up short versus expectations, forecast earnings per share of $1.95 versus a $2.05 consensus. That said, management did boost their near-term profit outlook following a partnership agreement with Microsoft. While shares did not react much to the release yesterday, the optimistic outlook offered by management in the earnings call is carrying shares upward, especially as integration of its product suite aided by major acquisitions of Magento and Marketo across industries offers significant opportunity. Get over to for in-depth coverage of Adobe's Microsoft tie up, the look ahead for cloud adoption, competition, trade impacts, and more.
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