Adobe Stock Falls Despite Record Revenue
Adobe, the maker of popular computer software for web development and graphics design, announced their third quarter results after the close of the markets last night and reported record revenue. Sales came in at $990.3 million for the quarter. This was a 42% improvement in revenue compared to the same period last year.
Profit on the income was also good at $0.54 a share. This is compared to $0.35 a share in the same period last year. The earnings and revenue came from all the services and solutions that the company offers. The company seemed optimistic overall about their content and applications despite a recent battle with Apple over the adoption of Flash. The company is well known for Flash and Acrobat Reader but makes their money with corporate software products.
The stock fell near 20% today as the company also provided guidance for their fourth quarter that not everyone was excited about. Analyst are looking for better numbers in the fourth quarter than the guidance that Adobe provided last night in their earnings call. The less than great expectations from the company come from weakness in corporate spending on licensing of popular Adobe products like Photoshop and Dreamweaver. The company was downgraded by analyst after the lackluster guidance.
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