Adobe Systems Incorporated (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. (AAPL), Google Inc. (GOOG), Intel Corp. (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. (ADSK), Ansys, Inc. (ANSS), and Dolby Laboratories, Inc. (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:
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. (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 (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.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
