Adobe (ADBE - Get Report)  declined Friday after the cloud-based software company issued fiscal second-quarter guidance below analysts' expectations.

The San Jose-based company said it expects earnings of $1.77 a share on revenue of $2.7 billion in the quarter, below analysts' calls for earnings of $1.88 on revenue of $2.72 billion.

For the fiscal first quarter, Adobe reported earnings of $1.71 a share on record revenue of $2.6 billion, topping analysts' bottom-line estimates of $1.62 on revenue of $2.55 billion.

"Adobe is fueling the creative economy, driving the paper-to-digital revolution and enabling businesses to transform through our leadership in customer experience management," said Shantanu Narayen, Adobe's president and CEO. "Our results in Q1 reflect continued momentum across Adobe Creative Cloud, Document Cloud and Experience Cloud."

The company also said it anticipates reporting full-year earnings and revenue of $7.80 a share and $11.15 billion, respectively, in line with what Wall Street was expecting for the year.

Analysts at KeyBanc Capital on Friday downgraded Adobe shares to sector weight from overweight.

The stock fell 4% to $257.04 in trading Friday.

**

How Much Money Will I Need to Retire?

Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.