Adobe Drops Despite Record Revenue
SAN JOSE, Calif. (
) --
Adobe
(ADBE) - Get Adobe Inc. Report
posted record third-quarter revenue after market close on Tuesday, but investors seemed underwhelmed by the company's weak fourth-quarter guidance.
The software maker brought in revenue of $990.3 million, a massive hike from $697.5 million in the prior year's quarter and well above analysts' estimate of $984.1 million. Sales were also at the high end of Adobe's own guidance, which was between $950 million and $1 billion.
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Investors, however, were less than impressed by Adobe's guidance after the company forecast fourth-quarter sales between $950 million and $1 billion. Analysts surveyed by Thomson Reuters had predicted sales of $1.03 billion and the company's stock plunged $3.11, or 9.44%, to $30.16 in extended trading.
Excluding items, Adobe earned 54 cents a share during the third quarter, up from 35 cents a share in the prior year's quarter, and above Wall Street's estimate of 49 cents a share.
In a statement, Adobe CEO Shantanu Narayen said that the company's numbers were boosted by strong performance in each of its major businesses. "We remain bullish about Adobe's long-term role in enabling the transformation of content and applications across industries," he added.
The
Apple
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TheStreet Recommends
and
Microsoft
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rival also blew past Wall Street's estimates in its
and is
expected to benefit
from Apple's recent
decision to ease the restrictions on developers creating apps for its iOS operating system.
--Written by James Rogers in New York.
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