Adobe Slumps on Tepid Guidance, Europe Weakness
SAN JOSE, Calif. (TheStreet) -- Shares of Adobe Systems (ADBE) slumped after market close on Tuesday as the software maker warned of weakening European demand.
The Apple (AAPL) and Microsoft (MSFT) rival comfortably beat Wall Street's second-quarter estimates, reporting revenue of $1.124 billion, up from $1.023 billion in the same period last year. Analysts were looking for sales of $1.108 billion.
Excluding items, Adobe earned 60 cents a share, up from 55 cents a share in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for earnings of 59 cents a share.
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| Adobe reported its second-quarter results after market close on Tuesday. |
The company's guidance, however, troubled investors, pushing shares down 3.95% to $31.59 in extended trading.
Adobe expects third-quarter revenue between $1.075 billion and $1.125 billion, below Wall Street's forecast of $1.133 billion. Excluding items, the San Jose, Calif.-based firm is targeting earnings of 56 to 61 cents a share. Analysts surveyed by Thomson Reuters had predicted earnings of 61 cents a share. The software specialist also narrowed its annual revenue growth target to a range between 6% and 7%, compared to its previous prediction of 6% to 8%. Excluding items, Adobe expects full-year earnings between $2.40 to $2.46 a share, tighter than its previous prediction for a profit of $2.38 to $2.48 a share. Analysts are looking for earnings of $2.68 a share. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: tips@thestreet.com. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.Select the service that is right for you!
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