Adobe Beats Earnings Forecast but Outlook Disappoints
Adobe reported earnings and revenue that topped forecasts but its outlook disappointed.
The company, which makes software including Photoshop and Acrobat, said its earnings excluding items rose to 55 cents a share in the fiscal second quarter, compared with 44 cents a year earlier.
Revenue rose 8 percent to $1.02 billion from $943 million last year.
Analysts had expected Adobe to report earnings of 51 cents a share on revenue of $995 million, according to Thomson Reuters.
The company, which is the world's biggest maker of design software, reported its net income jumped 54 percent to $229.4 million, or 45 cents a share.
However, Adobe's outlook fell short of analysts' expectations. The company said it expects earnings of 50 to 56 cents a share for the fiscal third quarter and sees revenue of $1.05 billion. Analysts expected earnings of 54 cents a share on revenue of $1.02 billion.
Adobe warned in March that sales would be cut in the quarter because of disruption after the earthquake and tsunami that struck Japan, which accounted for 13 percent of the company's sales last fiscal year.
Still, the company said Tuesday it was standing by its target of 10 percent revenue growth for all of fiscal 2011, which ends in early December.
Adobe said cash flow from operations was $389.3 million and that it repurchased 13.7 million shares of stock during the quarter.
Adobe shares were up over 3 percent in regular trading Tuesday, but fell in after-hours trading as investors digested the report. Click here to get the latest after-hours quote.
The report comes a few days ahead of earnings from software giant Oracle . Oracle shares rose more than 2 percent in regular trading.