Adobe Systems Inc.'s core earnings in the first quarter of fiscal 2019 beat market expectations as the company posted record sales.
The company said its non-GAAP EPS for the quarter ended March 1 was $1.71, up from $1.55 a year ago and above the S&P Global Market Intelligence consensus normalized EPS estimate of $1.62, according to a March 14 earnings release.
Non-GAAP net income totaled $844.0 million, a gain of 9.3% from $772.2 million in the year-earlier period.
On a GAAP basis, fiscal first-quarter net income increased 15.6% year over year, to $674.2 million, or $1.36 per share, from $583.1 million, or $1.17 per share.
Revenue climbed 25.1% on an annual basis, to $2.60 billion from $2.08 billion. "We're off to a strong start in fiscal 2019, with record revenue, strong earnings and more than $1 billion of operating cash flow in our first quarter," Executive Vice President and CFO John Murphy said in the release.
Adobe adopted Accounting Standards Codification 606 for its fiscal year 2019. The company's year-ago figures and previous financial guidance were reported under Accounting Standards Codification 605.
Under ASC 605, fiscal first-quarter EPS was $1.31 on a GAAP basis and $1.65 on a non-GAAP basis.
For the fiscal second quarter, Adobe is expecting EPS of $1.20 on a GAAP basis and $1.77 on a non-GAAP basis. Revenue is forecast to be at $2.7 billion.
For the full fiscal year, Adobe is projecting non-GAAP EPS of $7.80, up from the previous guidance of $7.75 per share. The company also raised its full-year GAAP EPS forecast to $5.59 from $5.54.
Adobe's full-year revenue forecast is unchanged at $11.15 billion.