Adobe Stock Falls To Record Low
Adobe suffered its lowest decline in nine months after disclosing that its second quarter sales in Europe were lower than expected. The stock fell 6.3 percent to $30.01 in the Nasdaq Stock Market trading. This is the biggest drop for the company since September 22, 2010. Its shares have already lost 2.5 percent this year.
Adobe had to deal with a weak Europe market and at the same time working on the new version of its Creative Suite. This might be the reason why customers in the United Kingdom and Scandinavia held back their purchases.
Adobe repeated that its forecast for this fiscal year is a growth of 10 percent. This includes the slow European market. Japan is Adobe’s second biggest market in the world but due to the earthquake and tsunami, it suffered a decrease of $10 million in sales in the quarter. This is still good news for Adobe because it projected at least a $50 million decrease in sales from Japan.
Adobe disclosed that in the current quarter, the profit before some expenses will be around 50 cents to 56 cents per share. This is within the range of the 54 cent average forecast by analysts. The total revenue for the company will be around $1 billion.