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 reported adjusted EPS of $0.55 on revenue of $1.01 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.58 and $1.1 billion in revenue.

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


Filed under: 24/7 Wall St. Wire, Earnings, Software Tagged: ADBE, featured
Read Full Story

Markets

NASDAQ 6,782.79 -10.50 -0.15%
S&P 500 2,578.85 -6.79 -0.26%
DJIA 23,358.24 -100.12 -0.43%
NIKKEI 225 22,396.80 45.68 0.20%
HANG SENG 29,199.04 180.28 0.62%
DAX 12,993.73 -53.49 -0.41%
USD (per EUR) 1.18 0.00 0.14%
USD (per CHF) 0.99 0.00 -0.44%
JPY (per USD) 112.07 0.02 0.01%
GBP (per USD) 1.32 0.00 0.01%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.