Adobe (ADBE) Lowers 2nd Quarter Revenue Outlook

Shares of Adobe (NASDAQ:ADBE) were pressured downwards after the quarterly report of the company, even though it exceeded revenue expectations, as the guidance of the company was downwardly revised on its exposure to Japan.

Japan is the second-largest market served by Adobe, with March being its historically strongest month there.

Revenue for the three months ended March 4th jumped 20%, year over year, to $1.03 billion, generating EPS of 58 cents. Analysts had been looking for 57 cents EPS on revenue of $1.03 billion.

Adobe’s CFO Mark Garrett slashed the revenue projections of the company for the second quarter by $50 million, citing the uncertainty surrounding the Japanese market.

For the current quarter, Adobe sees $970 million to $1.02 billion in revenue, below the average $1.02 billion estimate. EPS is expected in a range of 47 cents to 54 cents, against the average 56-cent analysts are expecting.

Adobe closed Tuesday at $32.88, up $0.54, or 1.67 percent. They fell in after hours trading to $32.73, down $0.15, or 0.46 percent, as of 6:19 PM EDT.