Adobe Reports Inline, but Forecast Is Weak
Adobe Systems Inc. (NASDAQ: ADBE) reported fiscal 2012 third quarter earnings after markets closed today. The software company reported adjusted earnings per share (EPS) of $0.58 on revenue of $1.08 billion. In the same period a year ago, the company…
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Adobe guided fourth fiscal quarter revenue at $1.075 billion to $1.125 billion and adjusted EPS at $0.53 to $0.58. The company’s guidance assumes the addition of 125,000 new subscribers to its Creative Cloud service.
The company’s guidance fell well short of the consensus estimates. Thomson Reuters had a consensus estimate for EPS of $0.67 on revenue of $1.21 billion.
The company’s president/CEO said:
Customers globally are adopting our new Creative Cloud subscription offering more quickly than we projected. We are the leader in the fast-growing Digital Marketing category with 40 percent year-over-year Digital Marketing Suite revenue growth this quarter.
The company said that currency translation effects cost it about $9 million in revenue for the quarter.
The company’s shares fell about 3% following the earnings release, but have gained all of that back in the last few minutes. Shares are down less than 0.1% in after-hours trading, at $33.30 in a 52-week range of $22.89 to $34.78.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
