Adobe slides, even after generating record sales


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Shares of software developer Adobe Systems Inc. ( ADBE ) slumped in Wednesday trading, despite the fact that the company generated nearly a billion dollars in revenue in its third quarter.

In its earnings release, Adobe noted that the quarter - which ended on September 3 - was its best ever, in sales terms. "Strong performance in each of our major businesses contributed to record revenue and strong earnings in [the period]," company CEO Shantanu Narayen said.

Adobe's solid results could reinforce the notion that the tech sector is surviving the nation's economic slowdown. Tech giant Oracle ( ORCL ) had a very strong third quarter, and Cisco Systems ( CSCO ) will offer a dividend for the first time after reporting solid quarterly sales growth.

Yet Wall Street did not look kindly upon Adobe's fourth-quarter outlook. The company's revenue projections were below analyst forecasts, the Associated Press says; more than one analyst downgraded her rating of Adobe as a result of the developer's forecast.

For example, the AP says, Standard & Poor's Equity Research analyst Zaineb Bokhari moved the company to "Hold" from "Strong Buy." Adobe's shares fell nearly 20 percent on Wednesday.

By Steve Monfort

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , Business , Technology , US Markets
More Headlines for: ADBE , CSCO , ORCL

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