Dividend.com: Adobe Systems' Failure

Adobe Systems Profit Fall 29% in First Quarter

Shares of Adobe Systems (ADBE Quote) were up slightly in the premarket, after the company reported first-quarter profit that fell to $156.4 million, or 30 cents per share, compared to $219.4 million, or 38 cents per share, a year earlier.

The company said sales dropped 12% to $786.4 million, as the slow economic activity put a damper on sales of Creative Suite 4, the latest version of the software package that brings in the bulk of Adobe's revenue.

Looking ahead, management is forecasting second-quarter EPS of 31 cents to 38 cents per share, around the consensus of 35 cents.

Shares have been cut more than in half since hitting 52-week highs of $44 a share in May. If the stock does continue to weaken, the next major level of technical support is near the $13-$15 level.

If the shares can firm up and move higher, we see overhead resistance at the $27-$30 levels. We do not currently rate this non-dividend paying stock, but do follow the name closely.

Adobe Systems does not currently pay a dividend.

PSEG Reaffirms 2009 Profit Outlook

Public Service Enterprise Group (PEG Quote), also known as PSEG, affirmed its 2009 profit outlook Wednesday, saying that its balance sheet remains strong.

The Newark, N.J.-based company, which supplies natural gas and electric power service to many Northeastern and Mid-Atlantic states, reaffirmed its earlier guidance of full-year 2009 profit of $3.00 to $3.25 per share.

These expectations are in-line with Wall Street predictions. On average, analysts expect full-year 2009 net income of $3.07 per share. Back in February, PSEG lowered its previous 2009 profit forecast of $3.05 to $3.35 per share.