FBR: Adobe Quarter 'Solid,' Company Still 'On Track'

In a report published Wednesday, FBR Capital Markets analyst Samad Samana maintained a Market Perform rating on Adobe Systems Incorporated (NASDAQ: ADBE), with a price target of $82, after the company reported solid F2Q results.

Adobe reported its quarterly revenue at $1.162 billion, marginally beating the consensus estimate of $1.158 billion, the upside being driven by the digital media segment. The company's pro forma EPS came in at $0.48, which also beat consensus of $0.45.

Total digital media ARR of $2.350 billion was higher than the consensus of $2.300 billion, driven by Creative ARR of $2.020 billion and document services ARR of $329.0 million.

Adobe announced its F3Q revenue guidance at $1.175 billion to $1.225 billion, which missed the consensus estimate of $1.243 billion.

In the report FBR Capital Markets noted, "Due entirely to FX headwinds, Adobe lowered its full-year revenue outlook from $4.925 billion to $4.845 billion. The company did maintain its $2.05 EPS estimate, reflecting the profitability of a subscription model as it scales and the company's commitment to driving margin expansion."

Analyst Samad Samana added, "Overall, we believe Adobe remains on track to deliver healthy revenue and EPS growth in FY15 and FY16, but at current levels, we think shares reflect most of the gains that are anticipated over the next 12 months."