Shares of Adobe Systems Inc. rose 2.5% late Monday after the software company raised its full-year 2018 and first-quarter earnings expectations, citing the U.S. tax overhaul, and said Chief Financial Officer Mark Garrett and general counsel Mike Dillon plan to retire this year. Adobe said it expects 2018 GAAP earnings of about $4.72 a share, and adjusted 2018 earnings of $6.20 a share, compared with a previous guidance of about $4.40 a share and about $5.50 a share. For the first quarter, the company expects GAAP earnings of $1.05 a share and adjusted earnings of $1.43 a share, compared with prior targets of $1.15 a share and $1.27 a share. “The new Tax Act is lowering Adobe’s effective tax rates, driving a significant increase in our earnings per share targets,” said CFO Garrett said in a statement. “With ready access to our offshore cash, we will continue to evaluate investment opportunities to grow our business and we are actively expanding our campuses in the Bay Area and Utah to accommodate the growth of our employee base.” In a separate statement, the company said Garrett and Dillon will remain in their current roles with Adobe until successors are in place. “Adobe is conducting an internal and external search to fill both roles, and Garrett and Dillon will be active participants in the search for and transition to their successors,” the company said. Shares ended the regular trading day up 1.1%.
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