Adobe profit falls; investors cheer
The software maker's shares rise, however, because guidance is a bit stronger than expected.
Update: 5 p.m. ET.
Adobe Systems (ADBE, news, msgs) said late Tuesday that it earned $126 million, or 24 cents per share, in its fiscal second quarter, a 41% drop from the $215 million, or 40 cents per share, it earned in the same period last year.
Adobe was hit by declining demand for its graphic-design software programs as advertisers cut back on spending because of the recession.
Revenue dropped 21% to $705 million, topping the consensus estimate of $695 million. Sales in the company's creative software division fell 22% to $411.7 million.
"Creative Suite 4 was unfortunate timing," said Pacific Crest Securities analyst Chad Bartley told Bloomberg News.
Creative Suite 4, a big graphic design, video editing and web development software package, came out last fall just as the recession worsened.
"The advertising market has seen substantial declines, with a lot of layoffs."
Adobe expects to earn 30 cents to 37 cents per share on revenue of between $665 million and $715 million. Wall Street is looking for 33 cents per share on $676.5 million in sales.
Adobe said sales are starting to bottom out in the U.S. The company also said it is continuing to look for merger and acquisitions opportunities.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the Thursday session on a mixed note ahead of Friday's nonfarm payrolls report for February (Briefing.com consensus 163K). The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.2%) posted modest gains while the Nasdaq Composite (-0.1%) lagged throughout the session.
Equities began the trading day on an upbeat note following comments from the Bank of England and the European Central Bank, both of which reaffirmed their commitment to ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'