Adobe forecasts 2016 profit, revenue below estimates
(Reuters) - Adobe Systems Inc forecast 2016 revenue and profit below estimates, sending its shares down 8 percent in extended trading.
The Photoshop maker said it expects full-year revenue of about $5.7 billion and an adjusted profit of $2.70 per share.
Analysts on average were expecting revenue of $5.93 billion and earnings of $3.19 per share, according to Thomson Reuters I/B/E/S.
Adobe has been switching to web-based subscriptions from traditional licensed software to help attract more predictable recurring revenue.
Creative Cloud, which includes Photoshop, Illustrator and Indexing, is the biggest of the company's cloud businesses. The other two are Marketing Cloud and Document Cloud.
The company, which is generally conservative with its estimates, is expecting about 20 percent growth in 2016 revenue for its Marketing Cloud segment.
The company's shares were down at $78.30 after closing at $85.15 on the Nasdaq on Tuesday.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Maju Samuel)
