Adobe this week let it be known that sales and earnings for the next quarter will likely fall short of expectations, news of which sent the software maker’s stock in a free-fall.
Adobe shares sank more than 20 percent from Tuesday’s close, even going so far as to hit a new 52-week low at $25.81 per share.
“We’re taking a cautious approach to the guidance,” Chief Executive Officer Shantanu Narayen said during a conference call with analysts. “The U.S. back-to-school environment this time was a little weaker overall.”
Education sales account for more than 10 percent of Adobe’s revenue, but that’s not the only factor. Adobe also cited weak sales in Japan, noting that the Japanese economy “hasn’t really come out of the recession yet.”
Adobe now expects fourth-quarter revenue to be in the neighborhood of $950 million to $1 billion, less than the $1.03 billion some analysts had projected.
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