Seeking Alpha
Profile| Send Message| ()  

Adobe (NASDAQ:ADBE) has been in the hot seat since Steve Jobs decided to remove the software company’s Flash from white hot Apple (NASDAQ:AAPL) hardware. Regardless, Adobe crushed Wall Street expectations with their first billion dollar quarter on a 33% revenue increase.

Adobe Earnings Cheat Sheet

Earnings: Increased to a profit of $268.9 million ($0.53/share) vs. a loss of $32 million ($0.06/share) YoY.

Revenue: Up 33% YoY to $1 billion.

Actual vs. Wall St. Expectations: ADBE beat the street, as analysts were expecting EPS of $0.52/share on revenues of $988 million.

Outlook: Adobe projects revenue between $1 billion and $1.05 billion versus $991.3 million expected by Wall Street. Earnings are projected between $0.54 cents and $0.59 cents a share versus $0.51 cents a share expected by Wall Street.

Notable Stats: Product sales rose 24% while revenue from service and support popped 53%.

Adobe is growing enterprise sales which is a new market for them since they traditionally focused on creative software.

Did You Hear That? Adobe CEO Shantanu Narayen said, “We are one of the most diversified software companies in the world and are entering 2011 with strong momentum.” Those are fighting words for Apple and Steve Jobs.

Competitors to Watch: Apple, Autodesk (NASDAQ:ADSK), Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG), and Oracle (NASDAQ:ORCL).

Commentary: Shares of Adobe have been caught between the 50 and 200 DMA. Let’s see if this news is enough for the stock to recapture a healthy level of support.

Disclosure: No holdings in companies mentioned.

Source: How Adobe Beat Earnings Expectations