Shares of Adobe Systems Inc. (NASDAQ: ADBE) are trading slightly higher in today's premarket action, following yesterday evening's fourth-quarter earnings release. The company posted a pretty strong quarter, but investors have displayed some concerns over the company's 2008 outlook, which was left unchanged.The company reported a growth of 21% for its quarterly profit, which rose up to $222.2 million, or 38 cents a share, following strong sales of its design software. Back a year ago, Adobe had posted a profit of $183.2 million, or 30 cents a share, in the same period.
Included in the company's figures were certain costs related to stock-based compensation and restructuring charges. Excluding that, the company''s profit was 49 cents per share. Analysts had been expecting to see the Adobe show earnings of 37 cents per share.
If you take a look at revenues, you see a very respectable jump of 34% in the quarter, helped by increased sales of software for photo editing, building Web sites and creating graphics. The maker of Photoshop, Flash and Illustrator software posted record sales of $911.2 million, easily beating analysts' expectations for sales of $887.33 million.
So far, all good news ... but, where there will be some questions among investors is the outlook ahead to 2008. The company left its guidance unchanged, and continues to anticipate a growth of 13% for its fiscal 2008 revenue. Adobe forecast first-quarter revenue in a range of $855 million and $885 million and first-quarter earnings per share in a range of 34 cents and 36 cents.
I would expect to see a good 2008 year for Adobe's profit as the company is expected to launch Adobe Integrated Runtime application and also an update of its Creative Suite software package.
Heading into today's action, shares are currently (around 8:00 a.m.) trading up 1.2% in the premarket, but last night, the company's 2008 outlook had initially pushed shares down, so we will have to wait until the trading session opens to see just how bullish Wall Street will view this earnings report.
Be sure to check back in the afternoon for results and market reaction.
Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.











Reader Comments (Page 1 of 1)
12-18-2007 @ 9:47AM
Jamie said...
Buy GXPI...read the news...gonna soar baby...safe as gold...