Earnings Preview: Adobe Systems Reports Thursday

Dec. 9.11 | About: Adobe Systems (ADBE)

Adobe Systems Incorporated (NASDAQ:ADBE) is anticipated to report earnings after the closing bell on December 15, 2011.

ADBE trades an average of 5.2 million shares per day.

52-Week High: $35.99
52-Week Low: $22.67
Book Value: $11.29
Float Short: 3.92%

Analysts are expecting an improvement of $0.05 in earnings per share compared to last quarter's results of $0.55. The reporting quarter's estimated mean earnings are $0.60 per share.

Adobe Systems stock price is below, but closing in on, the 200-day moving average of $29.69, after a brief break above last month for one day. Even so, the 200-day moving average is trending lower, with only the nine-day and 60-day averages trending higher. (I wrote another article about Adobe Systems and another about the last earnings season.)

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $3.80 billion for 2010 vs. $2.95 billion for 2009. The bottom line has rising earnings year-over-year of $774.68 million for 2010 vs. $386.51 million for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $993.07 million for 2010 vs. $690.51 million for 2009. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for ADBE Click to enlarge

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Aug-11 $ 1.03 B $ 1.01 B $ -13.75 M -1.34%
May-11 $ 994.79 M $ 1.02 B $ 28.39 M 2.85%
Feb-11 $ 1.03 B $ 1.03 B $ 1.18 M 0.11%
Nov-10 $ 983.77 M $ 1.01 B $ 24.18 M 2.46%
Aug-10 $ 984.94 M $ 990.32 M $ 5.38 M 0.55%
Click to enlarge

M = millions, B = billion.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results ADBE Click to enlarge

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for ADBE

paid2trade.com short interest tool. The total short interest number of shares for ADBE Click to enlarge

The number of days to cover short interest based on average daily trading volume for ADBE.

paid2trade.com number of days to cover short interest based on average daily trading volume for ADBE Click to enlarge

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I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.