Adobe has posted a fourth quarter profit that is more than a third higher than this time last year. But shares fell 3 per cent after Adobe failed to raise its outlook for fiscal 2005.

The company reaffirmed its outlook for the next financial year, sticking with its forecast 12 per cent increase in sales.

JMP Securities analyst Amy Feng told Reuters: "The guidance isn't going up. I think that's why the stock's down. Expectations for the stock are very high. "

Loomis, Sayles & Co analyst Tony Ursillo told The Street: "It was just a matter of not posting enough upside verses near-term expectations, but I don't think there's anything wrong with the company."

Stocking up

Stock is up almost 60 per cent so far this year, according to Reuters.

For the fourth quarter, which ended December 3, Adobe reported net income of $113.5 million, or 45 cents a share, up from $83.3 million, or 34 cents per share, a year earlier. Revenue was $429.5 million, up from $358.6 million a year-ago. According to Adobe revenue was boosted by strong sales of its Acrobat software.

Adobe also says that a boom in digital camera use has contributed to sales growth for products including Photoshop, Premiere Pro and InDesign.

Adobe executive VP of worldwide products Shantanu Narayen said: "Growth has been pretty consistent around the world."

The results exceeded analysts' average targets. According to Reuters Estimates analysts had called for revenue of $418.2 million and earnings per share of 42 cents.