Feeds

Adobe frightens Wall St with on-target results

Are these guys nervous or what?

Beginner's guide to SSL certificates

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.