Adobe Systems (NASDAQ:ADBE) this morning announced that it still expected to report revenue for the quarter ending November of $655 million to $685 million. The company originally issued that guidance on September 14.
The company also said that it it increasing GAAP operating margin and GAAP per-share earnings targets. It now expects GAAP operating margins of 23-25%, producing profits of 29-32 cents a share. Adobe had previously expected 21-24% operating margins, and 19-22 cents a share. The change reflects a gain on the sale of an equity investment and lower stock compensation expense than expected. The non-GAAP EPS target for the quarter is unchanged at 32-34 cents.
Adobe said it “has experienced solid demand in its major geographic markets quarter-to-date.” It also said it will start shipping Adobe Acrobat 8 as planned in the first week of November.
The Street is taking all of this as good news. “This reiteration should help allay fears some investors have had regarding the health of [Creative Suite 2] sales as we approach the launch of [Creative Suite 3] in [the second quarter of fiscal 2007],” analyst Rick Sherlund of Goldman Sachs wrote today. “With this overhand removed, we beleive Adobe stock can appreciate further headed into the [fiscal fourth quarter] report on December 14. We maintain our Buy rating.”
The Adobe update coincides with the company’s MAX user conference, taking place right now in Las Vegas.
Adobe shares today are up $1.42, or 3.7%, at $39.51.