Adobe Shares Fall on Weak Outlook
October 06 2015 - 5:30PM
Dow Jones News
Adobe Systems Inc. on Tuesday gave an outlook for its coming
fiscal year that was lower than Wall Street expected, pummeling the
company's shares.
In recent after-hours trading, Adobe shares dropped 8.8% to
$77.65. Through Tuesday's close, the stock had risen 26% in the
past 12 months.
Adobe projected adjusted earnings for its 2016 business year of
about $2.70 a share on about $5.7 billion in revenue. Analysts
polled by Thomson Reuters had forecast per-share earnings of $3.19
and revenue of $5.93 billion.
Adobe, famous for its publishing software like Photoshop that is
widely used by creative types, as well as popular Flash software,
has benefited recently from higher digital-media revenue. It
forecast digital-media revenue growth of about 20% in fiscal 2016
and annually through 2018.
In its third quarter of this year, the latest available, the
company posted digital media revenue of $769.7 million, up 24% from
the same period a year earlier.
The company in mid-September announced a leadership shake-up, as
David Wadhwani, its senior vice president and general manager for
digital media, left to take a chief executive post at AppDynamics
Inc. Bryan Lamkin, who previously headed the document cloud
business, stepped up to lead a combined digital-media business.
On Tuesday, the San Jose, Calif., company also provided
longer-term forecasts, saying it expected compound annual growth
rates from 2015 to 2018 of about 20% for revenue and about 30% for
adjusted earnings per share.
Write to Nathan Becker at nathan.becker@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 06, 2015 17:15 ET (21:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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