Adobe Systems Incorporated Drops After Hours On Weak Outlook

Adobe Systems Incorporated (NASDAQ: ADBE) shares fell in the extended session after the company offered a forecast below Wall Street's expectations.

Adobe traded recently down 4 percent to $70.73 a share.

The San Jose-based company forecast fiscal fourth-quarter earnings of $0.26 cents to $0.32 cents a share, on revenue of $1.03 billion to $1.08 billion. Analysts expected $0.31 cents a share in profits on revenue of $1.09 billion.

For the recent fiscal third quarter, Adobe posted earnings of $44.69 million or $0.09 cents a share, down from $83 million or $0.16 cents a share a year earlier. Adjusted earnings were $0.28 cents a share.

Revenue grew to $1.01 billion from $995.12 million a year earlier.

Analysts expected adjusted profit of $0.26 cents a share on revenue of $0.02 billion.

About 63 percent of third-quarter revenue derived from subscriptions "demonstrating the continued success of our business model transformation," away from license revenue, Chief Financial Officer Mark Garrett said.

Chief Executive Shantanu Narayen said customer growth in both the company's Digital Media and Digital Marketing segments "continues to accelerate" and it is poised for a "strong finish" to 2014.