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Shantanu Narayen, CEO of Adobe, attends a media event in Mumbai on May 3, 2017.
Abhijit Bhatlekar | Mint | Hindustan Times | Getty Images
The shares of Adobe fell 4% Tuesday after normal business hours, as the company announced better-than-expected third quarter results and blurred quarterly forecasts.
Here's how the company did:
- Earnings: $ 2.05 per share, excluding certain items, compared to $ 1.97 per share as expected by analysts, according to Refinitiv.
- Returned: $ 2.83 billion, against $ 2.82 billion as expected by analysts, according to Refinitiv.
The management was sweet, though. Adobe claims $ 2.25 billion in earnings per share for the fourth quarter of the year, excluding certain items, out of a $ 2.97 billion business figure. Adobe sees digital media revenue up 20% over last year, which would be slower than the last three quarters. Analysts surveyed by Refinitiv expected a profit of 2.30 USD per share, excluding certain items, on a turnover of 3.03 billion USD.
In the third quarter, which ended on August 30, the turnover increased by 24% over the same quarter of last year, according to a statement.
Some bookings were delayed in the third quarter, analyst chief Shantanu Narayen told analysts at a conference call on Tuesday.
Revenue from Adobe's digital media business, which includes Creative Cloud and Document Cloud, reached $ 1.96 billion, up 22% from a year earlier; Analysts surveyed by FactSet were looking for revenue of $ 1.93 billion.
The Digital Experience business generated $ 821 million in revenue. The consensus estimate of analysts surveyed by FactSet was slightly higher than that of 822.5 million.
During the quarter, Adobe announced a partnership with Rite-Aid and technology insights for new technologies for its Experience Cloud software.
"In the third quarter, the checks of our partners continue to meet the sustained demand of Adobe's product portfolio customers, despite early signs of macroeconomic uncertainty and nearly half of the company's total revenue generated outside the United States, "Morgan Stanley analysts Keith Weiss wrote in a note to customers on Monday.
The partners did not report that customers had pushed back the price increases of Acrobat by 30 percent for individuals or companies tested by Adobe during the quarter, Morgan Stanley analysts said. equivalent of a purchase note on Adobe shares.
Adobe shares rose about 25% for the year.
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