This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Street Applauds Adobe Systems

Investors seemed to be following their advice. In recent trading, Adobe's stock was up $4.01, or 11.9%, to $37.66 on trading that was already more than three times the stock's normal daily average. Earlier in the session, Adobe's stock was up as much as $4.54 to $38.19.

On Thursday, Adobe reported that third-quarter profit plunged 35% from the year-ago period. But the falloff was largely due to acquisition and stock-options costs that didn't weigh on the company's results last year.

Setting those aside, Adobe's results topped expectations. Additionally, the Photoshop publisher gave guidance for the fourth quarter that essentially met analysts' growth targets.

In the quarter ended Sept. 1, Adobe earned $94.4 million, or 16 cents a share. In contrast, the company earned $144.9 million, or 29 cents a share, in the year-ago period.

Thanks in part to the company's acquisition of Macromedia -- whose results weren't included in the year-ago results -- Adobe's sales jumped 21.7% to $579.2 million.

Excluding options, amortization and certain other costs, Adobe would have earned 29 cents a share, compared with 31 cents a share last year.

On this basis, analysts polled by Thomson First Call were expecting the company to earn 26 cents a share on sales of $595.1 million. Adobe's guidance , which the company reaffirmed in August, called for earnings of 13 cents to 16 cents a share -- 25 cents to 27 cents, excluding options and acquisition costs -- on sales ranging from $580 million to $610 million.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ADBE $74.02 0.57%
AAPL $125.07 -1.00%
FB $83.15 -0.05%
GOOG $553.56 0.28%
TSLA $190.77 0.10%


DOW 17,856.56 -119.75 -0.67%
S&P 500 2,079.00 -7.24 -0.35%
NASDAQ 4,926.2890 -21.1520 -0.43%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs