Adobe: New Act Lowers Tax Rates, Drives Significant Increase In EPS Targets

(RTTNews) - Adobe (ADBE) updated its financial targets to include expected financial impacts of the Tax Cuts and Jobs Act. In fiscal 2018, Adobe expects to achieve earnings per share of approximately $4.72 on a GAAP-basis, and $6.20 on a non-GAAP basis. The company's prior targets were approximately $4.40 on a GAAP-basis, and $5.50 on a non-GAAP basis.

In the first quarter of fiscal 2018, Adobe expects earnings per share of approximately $1.05 on a GAAP-basis, and $1.43 on a non-GAAP basis. The company's prior targets were approximately $1.15 on a GAAP-basis, and $1.27 on a non-GAAP basis.

Adobe reaffirmed financial targets including revenue, annualized recurring revenue and bookings targets for both the first quarter and for fiscal 2018. During fiscal 2018, the company expects quarterly revenue, earnings per share and Digital Media ARR results to follow similar seasonality as was achieved in fiscal 2017.

Adobe expects fiscal 2019 GAAP and non-GAAP effective tax rates to stabilize at a rate of approximately 18 percent, below its fiscal year 2017 rate of approximately 21 percent.

Separately, Adobe announced that Mark Garrett, executive vice president and CFO, and Mike Dillon, executive vice president and general counsel, intend to retire in 2018. The company said it is conducting an internal and external search to fill both roles.