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Adobe falls after 3Q revenue misses estimates
[September 16, 2014]

Adobe falls after 3Q revenue misses estimates


(Associated Press Via Acquire Media NewsEdge) SAN JOSE, Calif. (AP) — Shares of Adobe Systems Inc. declined in after-hours trading Tuesday after the software maker posted third-quarter revenue below Wall Street's expectations.

The San Jose, California-based company known for Photoshop, Illustrator and Acrobat posted earnings of $44.7 million, or 9 cents per share, in the three months that ended on Aug. 31. That's down 46 percent from $83 million, or 16 cents per share, a year earlier.



Earnings, adjusted for stock compensation expenses and other items, were 28 cents per share in the latest quarter, above Wall Street's expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 26 cents per share.

But Adobe posted revenue of $1.01 billion for the quarter, which fell short of Street forecasts. Analysts expected $1.02 billion.


The company ended the quarter with 2.8 million paid subscriptions for its Creative Cloud service, up by 502,000 from three months earlier.

Shares fell $3.22, or 4.6 percent, to $67.51 in after-hours trading. The stock had closed up 46 cents at $70.73, up 18 percent year-to-date.

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