As we noted earlier today, Adobe Systems Incorporated (NASDAQ: ADBE) was scheduled to report its first quarter earnings this afternoon following the market close, and the company put up earnings that beat Wall Street estimates by a penny.In our earnings preview for Adobe, we saw that the company had been expected to show earnings for the quarter of $0.44 per share, and the actual earnings for the quarter were slightly better, with a reported $0.45 per share.
The company's revenue for the quarter was also higher than expected, with a reported $786.4 million, versus the consensus of $784.15 million.
Despite slowing demand for its software updates, the company has been able to stay on top of its earnings mainly through employee layoffs and other cost cutting measures.
In a statement, the company's Chief Executive, Shantanu Narayen stated that "In this tough economic environment, we are pleased we were able to manage expenses to deliver solid... earnings and margin results."
Looking ahead to its second quarter, the company forecast earnings that were in line with analyst estimates of $0.35 per share.
The company continues to see its sales coming under pressure as professionals that would typically be quick to buy up its most recent software bundle, Creative Suite 4, are holding off on purchasing the software in the midst of the current economic slowdown.
Shares of the company are trading up in the after hours market by 2% to $19.50, up $0.37.
While the company is still facing uncertain times, its recent ability to manage its costs makes this definitely one stock that could do well over the remainder of the year. It is rebounding from a recent 52 week low, and looks as though it could definitely move back up towards the mid $20's following this afternoon's announcement.
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