Shares of Adobe shed 6% in after-hours trading Tuesday after the company said its second-quarter results will come in shy of Wall Street estimates.
With about five weeks left in the quarter, Adobe said it expects its results to come in toward the low end of its previous guidance range of $640-$670 revenues, 30-32 cent earnings, and operating margins of 37 to 38 percent.
Analysts were expecting earnings of 31 cents a share on sales of $662 million, according to Thomson Financial. The company will reports its results on June 15.
Adobe said it “experienced weaker than expected demand during the Spring holiday periods in Europe and North America.” It was the second time Adobe has lowered expectations for the quarter.
Stocks rebounded Tuesday as investors shook off inflation fears, with blue chips and small caps ending the day solidly higher. Technology stocks continued to lag on earnings concerns.
The Nasdaq gained 5 to 2309, the S&P 500 rose 8 to 1313, and the Dow surged 73 to 11,416. Volume rose to 2.41 billion shares on the NYSE, but declined to 2.12 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 17-13 on the Nasdaq. Upside volume was 70% on the NYSE, and 55% on the Nasdaq. New highs-new lows were 227-109 on the NYSE, and 170-66 on the Nasdaq.
Gartner jumped 12% on its earnings report.
Art Technology , Broadwing
, EFJ
, Iron Mountain
, Portal Player
and Sapient
fell on their results.
