Ahead Of The Bell: Adobe Systems
NEW YORK (AP) ¿ Shares of Adobe Systems Inc. should have more room to climb following recently announced job cuts, a Jefferies & Co. analyst said Wednesday.
Adobe, best known for its Photoshop, Flash and Acrobat graphics and publishing software, said late Tuesday it will cut 680 full-time positions to align costs with its fiscal 2010 budget. The cuts represent about 9 percent of its work force.
Jefferies analyst Ross MacMillan estimates the savings will add about 15 cents to 20 cents to Adobe's full-year adjusted earnings per share. He bumped his price target for the company's stock up to $40 from $37.
Though he called the jobs announcement a surprise, MacMillan said he expects additional cuts at Omniture Inc., a software company headquartered in San Jose, Calif., that Adobe bought in October. Adobe, also based in San Jose, has already cut about 108 jobs at Omniture, or 9 percent of Omniture's work force.The latest cuts will happen at its own operations, Adobe said. The cuts come almost a year after Adobe slashed 600 jobs, or 8 percent of its workers, because of slowing sales. Technology companies continue to shed jobs despite a recovering economy. This week, Sprint Nextel Corp. said it will eliminate 2,000 to 2,500 positions, while video game maker Electronic Arts Inc. said it is cutting 1,500 jobs.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV