Why Adobe Stock Is Down So Much Today
After the closing bell Thursday, Adobe (NASDAQ: ADBE) reported results for its fiscal third quarter that topped analysts' expectations. Despite that, shares of business software company were trading more than 9% lower early Friday afternoon, and it appears that the company's disappointing guidance for the quarter currently underway was the key driver of the sell-off.
In the period that ended Aug. 30, Adobe turned $5.41 billion worth of revenue into operating/non-GAAP earnings of $4.65 per share. Both numbers were well up from its year-earlier results of $4.89 billion and $4.09 per share, and topped analysts' consensus expectations for a top line of $5.37 billion and a profit of $4.53 per share.
The company's near-term outlook, however, left something to be desired. For its fiscal fourth quarter, which ends in November, Adobe expects to report sales of $5.5 billion to $5.55 billion, and non-GAAP earnings per share of $4.36 to $4.68. Analysts' consensus Q4 estimates were for $5.61 billion and $4.67, respectively.
Source Fool.com
Adobe Inc. Stock
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