(Bloomberg) -- Adobe Inc. gave a profit forecast for the current quarter that fell short of Wall Street’s estimates, signaling the Photoshop maker is still digesting two big-ticket acquisitions in its bid to become a leader in marketing technology.
Earnings, excluding some expenses, will be about $1.77 per share in the current period, the San Jose, California-based company said Thursday in a statement. Analysts had expected $1.88 on average, according to data compiled by Bloomberg.
The software maker, however, raised its forecast for fiscal year adjusted profit to about $7.80 a share from $7.75 a share, topping analysts’ estimates and signaling it expects a stronger second half of the year.
Chief Executive Officer Shantanu Narayen has transformed Adobe from a maker of creative tools for images, video and digital art into a contender in the competitive field of marketing technology. The company bought Marketo and e-commerce company Magento last year to bolster its product line against that of rival Salesforce.com Inc.
Adobe said it expects quarterly operating margins to increase in the second half as the impact of the Marketo and Magento acquisitions kicks in and the business grows.
The company’s stock fell about 1 percent in extended trading after closing at $267.69 in New York. The shares have gained 30 percent since dropping to a low of $205.16 on Dec. 24 as part of the sell-off in technology stocks.
Adobe’s total revenue rose 25 percent to $2.6 billion in the fiscal first quarter, beating analysts’ average estimate of $2.55 billion.
Sales of Adobe’s experience cloud division, which comprises the marketing tools, grew 34 percent to $743 million in the period ended Feb. 28, and is projected to grow 32 percent in the fiscal second quarter.
Adobe’s creative cloud division, led by Photoshop, grew 22 percent to $1.78 billion in the quarter and will grow by 20 percent in the period ending in May.
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