Earnings Preview: Adobe Systems Incorporated

| About: Adobe Systems (ADBE)

Company Profile

Adobe Systems Incorporated (NASDAQ:ADBE) operates as a diversified software company worldwide. It offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises and consumers. Adobe Systems is scheduled to report its second-quarter earnings results on June 19, 2012, after market close.

Technical Overview

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Adobe has a market cap of $15.70 billion and it is currently trading around $31.65 with a 52-week range of $22.67 to $34.78. The stock has 11.96% price performance for the year 2012. The following table provides the key financial ratios for Adobe :

Key Ratio Value
Current Ratio 3.14
PEG 2.02
P/E 20.29
Forward P/E 11.81
Profit Margin 18.51%
Return On Assets (ROA) 8.98%
Return On Equity (ROE) 13.73%

Recent News

  • On May 22, 2012, Adobe announced Primetime simulcast to accelerate online Ad revenue for TV content owners.
  • On May 15, 2012, Adobe announced a series of groundbreaking new features for Adobe Digital Publishing Suite ((NYSE:DPS)) that will allow media companies and corporate publishers to deliver unparalleled reach and monetize their unique content in new ways.
  • On May 15, 2012,Adobe announced the availability of Adobe ColdFusion 10 software, a premier server side technology designed to allow developers to create more dynamic and interactive Web applications for enterprises.
  • On May 15, 2012,Adobe announced the availability of Adobe CQ Cloud Manager, a Software-as-a-Service application that provides enterprises the ability to easily and quickly launch marketing initiatives in the cloud.
  • On May 15, 2012, Adobe announced Adobe CQ 5.5 Social Communities, providing digital marketers with the ability to better leverage social engagement across owned digital properties to build loyalty and drive conversion.
  • On May 15, 2012, Adobe announced enhancements to Adobe TagManager, creating a highly flexible privacy solution that helps digital advertisers and publishers give consumers notice and control over how their data is used online.
  • On May 15, 2012, Adobe announced the immediate availability of the Digital Analytics package, a combination of six products within the Adobe Digital Marketing Suite.
  • On May 11, 2012, Adobe announced the immediate availability of Adobe Creative Cloud, a radical new way of providing tools and services for creatives.
  • On May 11, 2012, Adobe announced the immediate availability of Adobe Muse software that enables designers to create websites without writing code.
  • On April 12, 2012, Adobe announced its Board of Directors has approved a new stock repurchase program granting the company authority to repurchase up to $2.0 billion in common stock through the end of fiscal 2015.

Analyst Guidance and Earnings History

The second-quarter revenue is expected to be $1.11 billion compared with $1.02 billion for the same quarter last year. Earnings per share for the second quarter are expected to be 59 cents a share, up from 55 cents a share in the year-ago period.

The average price target from analyst for Adobe is $34.72 with average rating is OVERWEIGHT.

Out of the last four quarters, Adobe has met or exceeded the EPS estimates all four times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Adobe :

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ADBE over the next 72 hours.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

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Tagged: , Application Software, Earnings
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