Adobe Backs 4Q Estimates, Sees 2017 Below Wall Street -- Update
November 02 2016 - 6:43PM
Dow Jones News
By Josh Beckerman
Adobe Systems Inc. expects fourth-quarter earnings and revenue
within its previous guidance and issued 2017 projections slightly
below Wall Street estimates.
The software company said it expects to meet its compound annual
growth rate targets through 2018, which include growth of about 30%
in earnings excluding items and more than 20% in revenue.
Adobe shares fell 1.3% to $104.50 in after-hours trading
Wednesday.
For 2017, Adobe expects earnings excluding items of $3.75 a
share on revenue of $7 billion. Analysts polled by Thomson Reuters
projected $3.86 a share in earnings and $7.1 billion in
revenue.
Adobe, known for Photoshop and its PDF reader, has been building
up its cloud platform in recent years, focusing more on
subscription revenue.
The company's Adobe MAX conference this week features speakers
including Quentin Tarantino and new products in areas like
photography and virtual reality, among them Project Felix
technology for creating photo-realistic composites.
In September, Adobe reported results at the top end of its
forecast for its third quarter ended Sept. 2. Revenue rose 20% to
$1.46 billion.
At that time, the company projected earnings excluding items of
83 cents to 89 cents a share on revenue of $1.55 billion to $1.6
billion for the current quarter.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
November 02, 2016 18:28 ET (22:28 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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