Adobe lifts profit forecast on tax reform boost
The company said it expects a charge of about $85 million in the current quarter related to taxes on foreign earnings
An Adobe Systems software box is seen in Los Angeles, California, US, March 13, 2017. PHOTO: REUTERS
Photoshop maker Adobe Systems on Monday lifted its adjusted profit forecast for the current quarter and the full year, saying it expects its effective tax rate to decline “substantially” due to the recently enacted US tax reforms.
London was top destination for tech funding in 2017
Adobe said it expects a charge of about $85 million in the current quarter related to taxes on repatriation of foreign earnings and remeasuring deferred tax assets, and a tax rate of 17 per cent compared with its previous target of about 9 percent.
But the company raised its current-quarter adjusted profit forecast, which will exclude the charge, to $1.43 per share from $1.27 per share.
Analysts on average were expecting a profit of $1.27 per share, according to Thomson Reuters.
For the fiscal year 2018, the company said it expects adjusted earnings of $6.20 per share, up from its prior forecast of $5.50. Analysts on average were expecting $5.57 per share.
Where Netflix goes, Big Tech may follow
Adobe also said Chief Financial Officer Mark Garrett and General Counsel Mike Dillon would retire this year.
The company’s shares rose 2.6 per cent to $203 in after-hours trading.
London was top destination for tech funding in 2017
Adobe said it expects a charge of about $85 million in the current quarter related to taxes on repatriation of foreign earnings and remeasuring deferred tax assets, and a tax rate of 17 per cent compared with its previous target of about 9 percent.
But the company raised its current-quarter adjusted profit forecast, which will exclude the charge, to $1.43 per share from $1.27 per share.
Analysts on average were expecting a profit of $1.27 per share, according to Thomson Reuters.
For the fiscal year 2018, the company said it expects adjusted earnings of $6.20 per share, up from its prior forecast of $5.50. Analysts on average were expecting $5.57 per share.
Where Netflix goes, Big Tech may follow
Adobe also said Chief Financial Officer Mark Garrett and General Counsel Mike Dillon would retire this year.
The company’s shares rose 2.6 per cent to $203 in after-hours trading.