Adobe Bulls Await Bounty

Expectations are running high for Adobe Systems'(ADBE) second-quarter earnings report later Thursday, as excitement over the company's refreshed product offerings has taken shares to the doorstep of their 52-week high.

Adobe shares were recently off 35 cents, to $43.76, but have climbed more than 15% in the past four months.

A run-up this week has coincided with -- or been sparked by -- generally positive earnings previews released by sell-side analysts. Goldman Sachs analyst Sasa Zorovic raised his second-quarter revenue estimate to $734 million from $721 million, and boosted his EPS estimate by a penny to 36 cents.

Software resellers have indicated "a fairly strong start" to the launch of Adobe's Creative Suite 3 software suite, particularly the bundled editions, as well as higher-than-expected growth of about 8% for Acrobat, Zorovic said in an interview.

The Creative Suite 3 Master Collection bundle is due to ship during the third quarter.

Resellers say Macintosh-based products by Apple(AAPL), which make up about one quarter of the company's revenue, are selling particularly well, Zorovic said. Mac users "have been thirsty for a new version of Adobe for some time."

JPMorgan analyst Adam Holt noted the company will probably exceed his quarterly revenue and EPS estimates (of $719 million and 35 cents, respectively), and he expects the company to boost third-quarter targets. "Given favorable CS [Creative Suite] checks and early demand for the Master Collection release in July, ADBE has the potential to raise the bar" for the third quarter, he wrote.