Adobe Systems Inc. (NASDAQ: ADBE) has reported earnings which met expectations on the surface. The non-GAAP report was $0.57 in earnings per share on sales of $1.05 billion. Thomson Reuters had estimates of $0.57 EPS on $1.05 billion in sales.
As far as guidance, Adobe sees second quarter earnings at $0.57 to $0.61 in earnings per share and sees the quarterly sales at $1.09 billion to $1.14 billion. Thomson Reuters has estimates of $0.60 EPS and $1.1 billion in sales.
The company is now putting full 2012 estimates for a gain of 6% to 8% in sales and it sees adjusted earnings coming in a range of $2.38 EPS to $2.48 EPS. Thomson Reuters has estimates of $2.42 EPS.
Having a “meet and guide sales and earnings in-line with estimates” quarter was just not going to be good enough. Shares closed up 2% at $34.51 and the after-hours share reaction is currently down 5.5% at $32.63. The 52-week trading range is $22.67 to $35.99.
If Adobe just makes its earnings figure for the year its closing bell price was 14.2-times projected earnings and about 3.2-times projected earnings. Those multiples are not exactly expensive, but the market just doesn’t offer the same multiples for companies as it used to.
JON C. OGG
