US Stock Market Move | The second quarter guidance is flat and the CEO will step down, Adobe (ADBE.US) opens down nearly 7%

On Friday, Adobe (ADBE.US) opened down nearly 7%, marking the largest intraday drop in a year, and is currently trading at $251.22. On the news front, the company reported a 12% increase in sales to $6.4 billion for the first fiscal quarter ending on February 27, higher than the analysts' average estimate of $6.28 billion. Adjusted earnings per share were $6.06, compared to the average estimate of $5.88. Adobe expects revenue for the current quarter ending in May to be between $6.43 billion and $6.48 billion, with analysts' average estimate at $6.43 billion; adjusted earnings per share are estimated to be between $5.80 and $5.85, compared to the average estimate of $5.70. In addition, Adobe announced on Thursday that Shantanu Narayen, 62, will step down as CEO after serving for 18 years, but will remain in the role until a successor is appointed and continue as chairman of the board. Industry analyst Anurag Rana wrote that Narayen's departure is a setback for the company, which has had a solid performance. "Since early last year, Adobe's financial indicators have hardly changed significantly, but the stock price has dropped by nearly 40% - which is likely a key reason for the CEO transition plan."