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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. The company's Creative and Interactive Solutions segment focuses on delivering a professional line of integrated tools for a range of design and publishing, and developer tasks.

It is scheduled to report its Q2 2012 results on June 19, 2012, after the market closes.

Technical Overview


Key Metrics

  • Market Cap: 15.71B

  • 52-week trading range: 22.67 - 34.78

  • Trailing P/E: 20.31

  • Forward P/E: 11.82

  • Price/Sales: 3.71

  • Price/Book: 2.62

  • PEG Ratio: 1.45

  • Total Debt: 1.51B

  • Annual dividend yield: N/A

  • Return on Equity: 13.73%

  • Return on Assets: 8.47%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter, it reported $0.57 EPS, in-line with analyst estimates.

The consensus EPS is $0.59 based on 25 analysts' estimates, up from $0.55 a year ago. Revenue estimates are $1.11B, up from $1.02B a year ago. The median target price by analysts for the stock is $36.50.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 15, 2012, the company was downgraded from Buy to Hold at Jefferies.

  • On March 20, 2012, the company was upgraded from Underperform to Sector Perform at RBC Capital Mkts.

  • On March 6, 2012, UBS reiterated Buy rating for the company.

Latest Developments

  • On April 19, 2012, Reuters reported that Apple Inc. (NASDAQ:AAPL), Google Inc. (NASDAQ:GOOG), Intel Corp. (NASDAQ:INTC) and four other technology companies were ordered by a judge to face an antitrust lawsuit claiming they illegally conspired not to poach each others employees.

  • On April 13, 2012, Adobe Systems Incorporated announced its Board of Directors 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.

  • On March 21, 2012, Adobe Systems announced it is partnering with hybris, a provider of multichannel commerce and communication software, to provide digital marketers comprehensive commerce capabilities as part of Adobe's solution for powering online customer experiences.

  • On March 19, 2012, Adobe Systems announced that for the second quarter of 2012, it expects revenue to be in the range of $1.090-$1.140 billion and diluted earnings per share (EPS) to be in the range of $0.37-$0.43 on a GAAP basis, and $0.57-$0.61 on a non-GAAP basis.

  • On February 28, 2012, Adobe Systems announced that it has selected Adobe Systems Incorporated as a technology partner for the Volly secure digital delivery service. Adobe Digital Marketing Suite technology will be a key component of the Volly system, both for the U.S.

  • On January 15, 2012, Adobe Systems announced the completion of its acquisition of privately held Efficient Frontier, an optimizing multi-channel and auction-based digital advertising across search, display and social media company.

Competitors

Adobe Systems Inc. operates in Application Software industry. The company could be compared to Autodesk, Inc. (NASDAQ:ADSK), Ansys, Inc. (NASDAQ:ANSS), and Dolby Laboratories, Inc. (NYSE:DLB). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

Click to enlarge:

ADBE Chart

ADBE data by YCharts

Competitors' Latest Development

  • On May 29, 2012, ANSYS, Inc. and Esterel Technologies S.A. announced that they signed a definitive agreement whereby ANSYS will acquire Esterel Technologies for a cash purchase price of approximately EUR42 million (or approximately USD53 million).

  • On May 22, 2012, Autodesk Inc. announced that Kawasaki Heavy Industries, Ltd. (NYSE:KHI) has adopted Autodesk Digital Prototyping software to design electrical controls in industrial robots.

  • On May 17, 2012, Autodesk Inc announced that for second quarter of 2013, it expects revenue to be in the range of $580 to $600 million, non-GAAP earnings per share in the range of $0.46 to $0.51 and GAAP EPS in the range of $0.29 to $0.34.

  • On May 3, 2012, Dolby Laboratories Inc. announced that for fiscal 2012, it is now targeting revenue of $910 million to $960 million. The company continues to target charges related to the amortization of acquired intangibles for fiscal 2012 of approximately $10 million and restructuring charges of approximately $2 million.

  • On May 3, 2012, ANSYS, Inc. announced that for the second quarter of 2012, it expects GAAP revenue in the range of $191.2 - $198.2 million, Non-GAAP revenue in the range of $192 - $199 million, GAAP diluted earnings per share of $0.46 - $0.51 and Non-GAAP diluted earnings per share of $0.66 - $0.69.

  • On April 30, 2012, ANSYS, Inc. and FMC Technologies have executed a long-term strategic agreement for simulation software that can standardize design analysis and provide scalability for growth.

  • On March 27, 2012, Dolby Laboratories Inc. announced the appointment of Lewis Chew as the company's Executive Vice President and Chief Financial Officer (NASDAQ:CFO), effective June 4, 2012, replacing Murray Demo.

  • On March 20, 2012, Balfour Beatty and Autodesk, Inc. announced that they have signed a three year, $12 million agreement that will help Balfour Beatty expand its adoption of Building Information Modelling (BIM).

  • On February 27, 2012, ANSYS, Inc. announced that its Board of Directors has approved an increase to its authorized share repurchase program to a total of up to 3 million shares.

  • On February 23, 2012, Autodesk Inc announced that for the first quarter of 2013, it expects revenue between $575 million to $590 million , EPS to be $0.29 to $0.31 and non-GAAP EPS to be $0.46 to $0.48.

  • On February 23, 2012, ANSYS, Inc. updated previously provided guidance for fiscal 2012 to factor in unfavorable currency changes that are partially offset by an improved business outlook.

  • On February 15, 2012, Dolby Laboratories Inc. through a subsidiary, sued one of its licensees, ArcSoft, Inc., with headquarters in Fremont, California, for failing to meet its contractual obligations with respect to sales and distribution of software containing Dolby's technology.

  • On February 8, 2012, Dolby Laboratories Inc. announced that its Board of Directors approved increasing its stock repurchase program by an additional $100 million, bringing the approximate amount available for future repurchases of Dolby`s Class A Common Stock to $436 million.

  • On February 1, 2012, Autodesk Inc announced that it is collaborating with Media Development Authority of Singapore (MDA) as the technology partner for its new Games Solution Centre.

  • On January 31, 2012, Dolby Laboratories Inc. announced that for fiscal 2012, its continues to target revenue of $910 million to $970 million and diluted earnings per share target range of $2.31 to $2.61 on a GAAP basis and $2.71 to $3.02 on a non-GAAP basis.

  • On December 22, 2011, Autodesk, Inc. announced that it has acquired certain technology-related assets from T-Splines Inc., a privately-held surface modeling software company, based in Utah.

  • On December 16, 2011, Autodesk, Inc. announced that it has completed the acquisition of Horizontal Systems, a provider of cloud-based Building Information Modeling (BIM) collaboration solutions for the Architecture, Engineering and Construction (AEC) industry.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Adobe Systems Incorporated