Fiscal first-quarter profits for Adobe Inc. slipped by 19 percent on lower margins; however, results still exceeded analyst expectations.
Shares gained 5.4 percent to trade at $37.12 in after-hours trading as the company raised forecast second-quarter earnings to 44 cents a share from 39 cents. Revenue on the new earnings is estimated between $875 million to $925 million. Analysts had forecast an average of 41 cents a share on revenue of $860 million for the quarter.
Analysts expected investors to focus on Adobe's outlook in anticipation of next month’s debut of the Creative Suite upgrade.
Adobe produces the popular software programs Photoshop and Illustrator but has been negatively swayed by illegal downloads weakening demand for its software from advertisers and other media professionals. Adobe, also produces Flash Player software used to play online video.
For the quarter they posted a profit of $127.2 million, or 24 cents a share. A year earlier the company earned $156.4 million, or 30 cents a share. Revenue increased 9.2 percent to $858.7 million.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription
