Photoshop maker Adobe Systems Inc forecast third-quarter revenue largely below analysts' estimates, sending the company's shares down 4.5 percent after the bell on Tuesday. Adobe, which is generally conservative with its forecast, forecast revenue of $1.42-$1.47 billion, largely below analysts average estimate of $1.47 billion, according to Thomson Reuters I/B/E/S.
Adobe also reported a 20.4 percent rise in second-quarter revenue, as more customers subscribed for its Creative Cloud package of software tools, such as Photoshop.
However, that also just met analysts' estimates. Adobe's net income rose to $244.1 million, or 48 cents per share, from $147.5 million, or 29 cents per share.
Revenue rose to $1.40 billion from $1.16 billion. Analysts were expecting $1.40 billion. Revenue from the company's digital media business, which houses Creative Cloud, jumped 26 percent to $943 million. Excluding items, Adobe earned 71 cents per share, beating analysts' estimates of 68 cents.