Adobe Slips on Underwhelming Results

Adobe Systems(ADBE Quote) reported second-quarter revenue and earnings that declined by double-digits compared with the year-ago period.

Investors appeared to dislike the news, sending Adobe stock down about 3% in afterhours trading. The stock was changing hands at $27.40 after closing the regular session at $28.17.

In a press release issued after the market closed, Adobe said revenue came in at nearly $705 million, down 21% from a year ago, but above analysts' estimates of $695 million. Adjusted earnings per share were 35 cents, even with Wall Street targets.

The PDF software company also offered some third-quarter guidance in line with what Wall Street has been expecting. According to Adobe, revenue in the forthcoming period will likely hit $665 million to $715 million, while its per-share profit will be between 30 cents and 37 cents.

Analysts have been looking for EPS of 33 cents on revenue of $676 million for the third quarter.

Adobe also said it wants operating margins of 20.5% to 25.5% on a GAAP basis, and 31% to 35% on a non-GAAP basis.