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.
|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.
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