Adobe Backs 4Q Estimates, Sees 2017 Below Wall Street -- Update

   By Josh Beckerman 
 

Adobe Systems Inc. expects fourth-quarter earnings and revenue within its previous guidance and issued 2017 projections slightly below Wall Street estimates.

The software company said it expects to meet its compound annual growth rate targets through 2018, which include growth of about 30% in earnings excluding items and more than 20% in revenue.

Adobe shares fell 1.3% to $104.50 in after-hours trading Wednesday.

For 2017, Adobe expects earnings excluding items of $3.75 a share on revenue of $7 billion. Analysts polled by Thomson Reuters projected $3.86 a share in earnings and $7.1 billion in revenue.

Adobe, known for Photoshop and its PDF reader, has been building up its cloud platform in recent years, focusing more on subscription revenue.

The company's Adobe MAX conference this week features speakers including Quentin Tarantino and new products in areas like photography and virtual reality, among them Project Felix technology for creating photo-realistic composites.

In September, Adobe reported results at the top end of its forecast for its third quarter ended Sept. 2. Revenue rose 20% to $1.46 billion.

At that time, the company projected earnings excluding items of 83 cents to 89 cents a share on revenue of $1.55 billion to $1.6 billion for the current quarter.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

November 02, 2016 18:28 ET (22:28 GMT)

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