Shares of Adobe (ADBE) fell in post-market trading after the computer software company reported second quarter results and provided a lower-than-expected revenue outlook for the third quarter.
WHAT'S NEW: After the market close, Adobe reported Q2 earnings per share of 71c on revenue of $1.4B, roughly in line with consensus estimates of 68c and $1.4B, respectively. The company said that Digital Media revenue rose 26% year-over-year in Q2 and that Creative revenue increased 37%. In addition, Adobe provided an outlook for the next quarter, guiding for Q3 EPS in the range of 69c-75c and revenue in the range of $1.42B-$1.47B. Analysts expect the company to report Q3 EPS of 71c on revenue of $1.47B.
LOOKING FORWARD: Despite the Q3 revenue guidance, Adobe executive vice president and Chief Financial Officer Mark Garrett said the company remains "on track to meet or exceed all of our annual fiscal year 2016 targets." Later on, Chief Executive Officer Shantanu Narayen reiterated in an interview on CNBC that the company's third quarter is traditionally slower than its fourth quarter.
PRICE ACTION: In after hours trading, Adobe Systems fell 4.36% to $95.37.
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