"Shares of Adobe ADBE +4.90% advanced 5% to $50.54 in heavy volume after the company reported adjusted fiscal third-quarter earnings of 32 cents a share on revenue of $995.1 million. While those numbers were below Wall Street estimates, Adobe said its cloud-computing business surpassed 1 million subscriptions in the quarter.
Analysts expected a consensus of 34 cents a share on revenue of $1.01 billion, according to FactSet."
They missed revenues and profits !!
I guess Adobe's business model is shifting as well and Wall Street loves it !!
"In company news, Adobe Systems (ADBE_), the maker of creative-suite products like Photoshop and InDesign, said fiscal third-quarter earnings on an adjusted basis fell to 32 cents a share from 58 cents a share a year earlier. Revenue fell 8% in the quarter to $995.1 million. Wall Street expected Adobe to report earnings of 34 cents a share on revenue of $1.01 billion.
Still, shares were gaining more than 6% to $51.06 in premarket trading as investors noted that Adobe has been shifting its business to a subscription-based model. The company said subscription revenue rose 73% to $299.4 million."
In the words of late senator Lloyd Bentsen during the 1988 vice presidential debate, When the subject of the debate turned to Quayle's relatively limited experience in public life, he compared the length of his congressional service with that of former President John F. Kennedy. Bentsen's response — "Senator, I knew Jack Kennedy. I worked with Jack Kennedy. Senator you're no Jack Kennedy" . :)-
Likewise, I know Adobe. I have worked with Adobe. Click is NO Adobe. :)-