Feeds

Adobe frightens Wall St with on-target results

Are these guys nervous or what?

The essential guide to IT transformation

Adobe injected a note of nervousness into the tech investment community yesterday as it set third quarter financial targets at the lower end of some analysts’ estimates and its CEO said a naughty word.

The software vendor said it expects third quarter revenues to come in at $855m to $885m, generating earnings per share of $0.45 to $0.47. This compared to the consensus forecast of $877.9m giving earnings per share of $0.45. Some analysts had banked on EPS of $0.47 on revs as high as $911.75m.

The measured forecast came as it unveiled second quarter sales up 19 per cent on the year to $886.9m, delivering net income up 40.9 per cent to $214.9m. Year to date revenues were $1.8bn, compared to last year’s $1.4bn, with net income up 46.5 per cent to $434m.

While the vendor’s forecast was hardly out of whack with Wall Street’s view, it was still enough to pull its shares down a few per cent.

Adobe’s financial statement did not give much context for the Q3 forecast, but according to Reuters, CEO Shantanu Narayen said that its ability to meet its targets could be hit if the US slowdown gets worse.

"I'm not an economist. All I can do is reflect on what I have seen so far," he reportedly said. "Demand for our products remains strong. (But) we are not immune to a recession."

So, it would appear that delivering results and forecasts in line with estimates is not enough these days. Just saying the R word is enough to give Wall Street’s finest the fear. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?