Adobe lifts profit forecast on tax reform boost
Photoshop maker Adobe Systems Inc
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 percent 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 I/B/E/S.
For 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.
Adobe also said Chief Financial Officer Mark Garrett and General Counsel Mike Dillon would retire this year.
The company`s shares rose 2.6 percent to $203 in after-hours trading.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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