This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Adobe Lowers Guidance

Updated from 4:48 p.m. EDT

Adobe Systems (ADBE - Get Report) grew second-quarter sales by 28% but still came in below its own guidance and Wall Street's estimates.

The design software maker also lowered its guidance for the rest of the fiscal year.

The news led to a quick selloff Thursday. In recent after-hours trade, shares were off $1.21, or 4.2% to $27.75.

Revenue in the May quarter was $635.5 million compared with $496 million a year ago. The top line was bolstered by the acquisition of Macromedia in December, 2005.

Analysts polled by Thomson First Call were expecting sales of $645 million; the company had guided sales of $640 million to $670 million.

Adobe posted a GAAP profit of $123.1 million, or 20 cents a share, compared with $149.8 million, or 29 cents a share, in the same quarter of fiscal 2005.

Excluding various items, the company earned 31 cents a share, a penny better than analysts had forecast.

For the third quarter, Adobe is targeting revenue of $580 million to $610 million, compared with expectations of $629 million. EPS, it said, should range from 25 cents to 27 cents. Wall Street was looking for 29 cents.

For the rest of the year, the company lowered its revenue target to a range of $2.54 billion to $2.60 billion from the prior target of approximately $2.7 billion.

Non-GAAP EPS will range from $1.20 to $1.25 a share, compared with earlier guidance of $1.26 to $1.30. Wall Street was looking for EPS of $1.26.

Adobe has had a rough spring. Shares started to slide in early May when the company said it expects to hit the low end of previous second-quarter guidance.

A bullish note by an analyst at Cowen & Co. sparked a brief rally earlier this week, but those gains have largely been erased, and the stock is off 23% since the first of the year.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADBE $75.53 0.00%
AAPL $94.27 0.00%
FB $101.00 0.00%
GOOG $684.12 0.00%
TSLA $143.67 0.00%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs