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Adobe Systems Inc. (ADBE) is scheduled to report its Q3 2012 results on September 19, 2012, after the bell. The street expects EPS and revenue of $0.58 and $1.10B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from ADBE and the news from its closest competitors.

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Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last five quarters. In the last quarter it reported $0.60 EPS, just above analyst estimates of $0.59.

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The consensus EPS estimate is $0.58 based on 25 analysts' estimates, up from $0.55 a year ago. Revenue estimates are $1.10B, up from $1.01B a year ago. The median target price by analysts for the stock is $37.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 19, 2012, JMP Securities downgraded the company from Mkt Perform to Mkt Underperform.
  • On June 14, 2012, Jefferies downgraded the company from Buy to Hold.
  • On March 20, 2012, RBC Capital Mkts upgraded the company from Underperform to Sector Perform.

Latest News

  • On June 19, 2012, Adobe Systems Incorporated announced that for third quarter of 2012, it expects revenue of $1.075-$1.125 billion, diluted earnings per share basis to a range of $0.38-$0.43 on a GAAP basis, and $0.56-$0.61 on a non-GAAP basis.
  • On April 19, 2012, Reuters reported that Apple Inc, Google Inc, Intel Corp and four other technology companies were ordered by a judge to face an antitrust lawsuit claiming they illegally conspired not to poach each other's employees.
  • On April 13, 2012, Adobe Systems Incorporated 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.
  • 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.

Competitors

Autodesk (ADSK), Ansys (ANSS), Dolby Laboratories (DLB), and Microsoft (MSFT) are peers for comparison for Adobe and the table below provides the key metrics for these companies and the industry.

Adobe Systems Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

ADBE Chart

ADBE data by YCharts

Competitors' Latest Development

  • On September 12, 2012, The Economic Times reported that NIIT Ltd has inked a strategic alliance with Microsoft Corp to develop cloud-ready professionals, to take on assignments in the global IT industry.
  • On August 29, 2012, The Economic Times reported that in a sign of the increasing role being played by telecom operators in the emerging cloud computing ecosystem, India's telco Bharti Airtel Limited has tied up with Microsoft Corp to sell the software giant's office productivity suite to small and medium businesses in India.
  • On August 28, 2012, Autodesk Inc announced it has acquired certain assets of Inforbix, LLC. Terms of the transaction were not disclosed.
  • On August 23, 2012, Autodesk Inc announced that for the third quarter of 2013, it expects revenue of between $550-$570 million, GAAP EPS of $0.02-$0.07 and Non-GAAP EPS of $0.40-$0.45. For fiscal 2013, it expects net revenue for fiscal 2013 to increase by 4%-6% compared to fiscal 2012.
  • On August 14, 2012, Reuters reported that Eastman Kodak Co extended its patent auction on Monday, saying it would not announce a winner as planned because it was still in discussions with bidders.
  • On August 11, 2012, Reuters reported that as Eastman Kodak Co's patent auction draws to a close, the Company has only received lowball bids for the patents that it believes are worth $2.6 billion, the Wall Street Journal reported.
  • On August 2, 2012, ANSYS, Inc. updated fiscal 2012 revenue and earnings per share guidance which is provided on both a GAAP basis and a non-GAAP basis. For the third quarter of 2012, it expects GAAP revenue in the range of $194-$202 million, non-GAAP revenue in the range of $197-$204 million, GAAP diluted EPS of $0.43-$0.48 and non-GAAP diluted EPS of $0.67-$0.69. The Company currently expects for fiscal 2012, GAAP revenue in the range of $801-$824 million, non-GAAP revenue in the range of $810-$830 million, GAAP diluted EPS of $1.94-$2.07 and Non-GAAP diluted EPS of $2.78-$2.87.
  • On August 2, 2012, Dolby Laboratories Inc. announced that for fiscal 2012, it is now anticipating total revenue to range from $900 million to $920 million. Dolby continues to expect diluted shares outstanding of approximately 108 million.
  • On July 24, 2012, Microsoft Corp announced that it has signed a patent cross-license agreement with Amdocs Software Systems Limited. The patent agreement provides mutual access to each company's patent portfolio, including a license under Microsoft's patent portfolio covering Amdocs' use of Linux-based servers in its data centers.
  • On July 20, 2012, Cheops Technology France SA announced that it has partnered with Microsoft Corp and Dell Inc to make the tour of France to present all the announcements of Microsoft Corp's Worldwide Partner Conference, which was held in Toronto, Canada.
  • On July 19, 2012, Subatomic Studios announced that Subatomic Studios turned to Autodesk 3ds Max 3D animation software to create 'Fieldrunners 2,' available for the iPhone.
  • On July 17, 2012, Autodesk Inc announced that it has signed a definitive agreement to acquire Socialcam for a purchase price of approximately $60 Million. Socialcam is a mobile social video capture, editing and sharing app and service that was launched in 2011.
  • On July 17, 2012, Reuters reported that EU antitrust regulators have opened an investigation into whether Microsoft Corp is complying with a 2009 ruling ordering it to offer users a choice of web browsers, the European Union's antitrust chief said on Tuesday.
  • On July 16, 2012, Reuters reported that Comcast Corp., the parent company of NBC, has bought out Microsoft Corp's 50% stake in MSNBC.com for about $300 million to assume full control of the news web site.
  • On July 10, 2012, Microsoft Corp announced that it has further extended its relationship with the Cincom Systems. Cincom has added Cincom Acquire configure, price, quote software to Global Independent Software Vendor (ISV) agreement with Microsoft Dynamics.
  • On July 10, 2012, Dow Jones reported that Microsoft Corp is suing nine computer resellers in China for allegedly installing pirated Windows software on computers they then sold.
  • On July 9, 2012, Microsoft Corp. and Aluratek, Inc. announced that they have signed a patent agreement that provides broad coverage under Microsoft's patent portfolio for Aluratek's eReaders and tablets running the Android or Chrome Platform.
  • On July 9, 2012, Microsoft Corp. and Coby Electronics Corporation announced that they have signed a patent agreement that provides broad coverage under Microsoft's patent portfolio for Coby's products running the Android or Chrome Platform.
  • On July 9, 2012, Microsoft Corp. and Perceptive Pixel Inc. (PPI) announced that they have entered into a definitive agreement under which Microsoft will acquire PPI, a recognized leader in research, development and production of large-scale, multi-touch display solutions.
  • On July 5, 2012, Edgewater Technology, Inc. announced that Edgewater Fullscope, a wholly-owned subsidiary, has entered into an asset purchase agreement with Microsoft Corporation.
  • On July 2, 2012, Microsoft Corp announced that it will take a non-cash, non-tax-deductible income statement charge for the fourth quarter of fiscal year 2012 for the impairment of goodwill in its Online Services Division segment, mostly related to its 2007 aQuantive, Inc., acquisition.
  • On June 29, 2012, BSQUARE Corp. announced the renewal of the Company's Original Equipment Manufacturer (OEM) distribution agreement with Microsoft Corporation. Under this agreement, Bsquare will provide OEMs with licenses for Microsoft Windows Embedded products including Windows Embedded Standard 7, Windows Embedded Compact 7, Windows Embedded Server and vertical specific operating systems such as POSReady 7. The agreement, which is effective for the period July 1, 2012 to June 30, 2013, renews the Bsquare Microsoft distribution relationship for the 14th year and allows Bsquare to distribute the complete line of Microsoft Windows Embedded operating systems within the United States, Canada, Mexico and the Caribbean.
  • On June 29, 2012, Reuters reported that Research In Motion, Ltd.'s Board is under mounting pressure to consider unpalatable options such as selling its network business or forming an alliance with Microsoft Corp after the Blackberry maker again delayed the release of its smartphones.
  • On June 27, 2012, Dow Jones reported that Microsoft Corp suffered a blow in its long running battle with European Union regulators as Europe's second highest court decided to only slightly reduce a 2008 European Commission decision to fine the company.
  • On June 26, 2012, Avanquest Software SA announced a strengthening of its technological partnership with Microsoft Corp. Avanquest Software will develop and publish a series of applications with Cloud components that will use Microsoft's Windows Azure Cloud platform.
  • On June 25, 2012, Microsoft Corp. and Yammer Inc. announced that they have entered into a definitive agreement under which Microsoft will acquire Yammer, a provider of enterprise social networks, for $1.2 billion in cash.
  • On June 21, 2012, Longview, Texas-based InNova Patent Licensing LLC has filed patent infringement lawsuits against 24 tech companies accused of infringing an InNova patent used in e-mail spam technology.
  • On June 19, 2012, Reuters reported that Autodesk Inc extended its share buyback program by up to 30 million. This is in addition to the 12 million shares that remain under previously authorized share repurchase programs.
  • On June 19, 2012, Autodesk Inc reaffirmed outlook for the second quarter and fiscal 2013. The Company expects revenue of between $580 to $600 million, GAAP EPS of $0.29 to $0.34 and Non-GAAP EPS of $0.46 to $0.51 for the second quarter of 2013.
  • On June 17, 2012, Reuters reported that Microsoft Corp is close to buying business software company Yammer Inc for more than $1 billion. Microsoft's interest in Yammer, known for its social networking functions, could allow the software giant to beef up its offerings for corporations.

Technical Overview


The stock has a market capitalization of $16.40B and is currently trading at $33.34 with a 52 week range of $22.89 - $34.78. The stock's year-to-date performance has been 17.93%. It is currently trading above 20, 50 and 200 SMA.

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

Source: Earnings Preview: Adobe Systems Reports Q3 Earnings On September 19