This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Slumps on Tepid Guidance, Europe Weakness

SAN JOSE, Calif. ( TheStreet) -- Shares of Adobe Systems (ADBE - Get Report) slumped after market close on Tuesday as the software maker warned of weakening European demand.

The Apple (AAPL - Get Report) and Microsoft (MSFT - Get Report) 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.

Adobe
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.

>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.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ADBE $75.07 1.50%
AAPL $124.25 -0.14%
MSFT $40.72 0.16%
FB $81.66 -0.67%
GOOG $542.45 -1.00%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs