S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Apps & Software

Adobe Earnings, Good Not Good Enough (ADBE)

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
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

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Continue Reading

Jon C. Ogg |

Can Adobe Maintain Earnings Momentum? (ADBE)

Adobe Systems Inc. (NASDAQ: ADBE) is set to report earnings on Monday and Wall Street and Silicon Valley will be…

Jon C. Ogg |

This Week’s Top Earnings on Deck (CCL, DG, JEF, WAG, ADBE, JBL, SONC, GIS, PAYX, RHT, BBY, CAG, GME, DRI, ORCL, RIMM)

Earnings season is supposed to be over, but we have a packed week full of earnings due from off-calendar quarterly…

Jon C. Ogg |

Adobe Beats Earnings… Maybe It Doesn’t Need Apple (ADBE, AAPL)

Adobe Systems Incorporated (NASDAQ: ADBE) has just reported earnings for its fiscal fourth quarter, and the company is highlighting that…

Jon C. Ogg |

What to Expect From Adobe Earnings

Earnings season is winding down, but Adobe Systems is set to report earnings on Tuesday after the close. Here is…

Jon C. Ogg |

Top Earnings Previews For Thursday (BZH, PHM, BX, CME, DOW, GNW, GILD, IP, K, MA, MRK, RCL, HOT, TRMB, VRTX, YRCW)

Earnings season is still upon us.  There are going to be many big earnings reports Thursday and we would consider…

Jon C. Ogg |

QUALCOMM Earnings: Great Might Not Be Good Enough

ThinkstockQUALCOMM, Inc. (NASDAQ: QCOM) has been riding the smartphone wave for quite some time now. Its earnings report may be…

Jon C. Ogg |

Red Hat Earnings: Great Outfit, Valuation Still Too High (RHT)

Red Hat, Inc. (NYSE: RHT) is the old king of Linux but is now more of a virtualization and cloud…

Jon C. Ogg |

Adobe Earnings Brings All-Time High

Adobe Systems shares are reacting so well to the company's second-quarter earnings release that the stock is at new all-time…

Jon C. Ogg |

11 DJIA Components Reporting Earnings Next Week (IBM, BAC, KO, BA, UTX, T, CAT, MCD, TRV, AXP, VZ, C, MO, HON)

The week of October 18 to 22 is jam-packed with earnings.  It also happens that eleven of the thirty DJIA…

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820