Adobe Systems Earnings Preview

Wall Street analysts have been getting more conservative over Adobe Systems earnings prospects. Adobe is scheduled to report their fiscal second quarter 2010 results after the market closes on Tuesday, June 22.

 

Last quarter, Adobe reported earnings results that were $.03 above Wall Street’s consensus estimates. That was the third consecutive quarter for Adobe Systems to exceed Wall Street’s consensus earnings expectations. ADBE shares climbed 3.7% following the earnings beat.

 

The current Wall Street consensus estimates are for revenues of $905.1 million and EPS of $.42. This would imply a 28% jump in revenues over last year’s $704.7 million. And a 20% growth in earnings over the $.35 per share earned in the previous year.

 

In 2010, Adobe’s shares have dropped 10% and underperformed the 2% gain in the Nasdaq. Last year, ADBE shares jumped over 72% as the stock handily outperformed even the 44% gain in the Nasdaq.

 

Adobe stock is currently trading at 16x consensus 2011 EPS estimates. Look for another solid quarter from Adobe and a 2-3% jump in the stock price following the earnings release.

 

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