Shantanu Narayen, CEO of Adobe, attends a media event in Mumbai on May 3, 2017.
Abhijit Bhatlekar | Mint | Hindustan Times | Getty Images
Adobe shares fell as much as 4% on Tuesday after hours, as the company reported better-than-expected third-quarter earnings and soft quarterly guidance.
Here's how the company did:
- Revenue: $ 2.05 per share, excluding certain items, versus $ 1
- Revenue: $ 2.83 billion, versus $ 2.82 billion as expected by analysts, according to Refinitive.  However, the guide was soft. Adobe requests $ 2.25 in tax revenue per share for the fourth quarter, excluding certain items, for $ 2.97 billion in revenue. Adobe sees Digital Media revenue increase 20% from a year ago, which will be slower than the past three quarters. Analysts polled by Refinitive had projected earnings of $ 2.30 per share, excluding certain items, of $ 3.03 billion in revenue.
In the third quarter, which ended on August 30, sales increased 24% from the quarter this year, according to a statement.  Some bookings were delayed in the third quarter, Adobe CEO Shantanu Narayen told analysts at a Tuesday conference.
Revenues from Adobe's digital media business, which includes Creative Cloud and Document Cloud, totaled $ 1.96 billion, up 22% from a year ago; analysts polled by FactSet were looking for $ 1.93 billion in segment revenue.
The Digital Experience business generated $ 821 million in sales. Analysts' consensus estimates from FactSet were just over $ 822.5 million.
During the quarter, Adobe announced a partnership with Rite-Aid and new technology preview for its Experience Cloud software.
"Our partner checks remain to support healthy customer needs throughout the Adobe product portfolio in Q3, despite early signs of global macro security and about half of total company's revenue generated outside the United States," Morgan Stanley analysts led by Keith Weiss in a note distributed to clients Monday.
Partners did not indicate that customers were pushing back 30% price increases on Acrobat prices for individuals or businesses tested by Adobe during the quarter, Morgan Stanley analysts wrote, which corresponds to a buy rating on Adobe shares.  Adobe's shares increase by about 25% for the year.
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