Stocks to Watch: Adobe, Procter & Gamble (Update 1)

NEW YORK -- Adobe Systems (ADBE), the publishing software maker, provided a disappointing outlook for its fiscal third quarter on Tuesday because of a "weaker demand forecast" for Europe.

Adobe forecast non-GAAP earnings of 56 cents to 61 cents a share for the three months ending in August on revenue of $1.075 billion to $1.125 billion. Analysts forecast profit of 61 cents a share on revenue of $1.133 billion.

Adobe shares dropped 5.75% to $31.00 in premarket trading Wednesday.

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Procter & Gamble (PG), the consumer-products giant, reduced its fourth-quarter profit and revenue forecasts because of slower-than-anticipated sales growth in developed markets.

P&G said Wednesday it expects to post core earnings for the quarter ending in June of 75 cents to 79 cents a share; its previous estimate was 79 cents to 85 cents a share.

Analysts forecast core earnings of 82 cents a share in P&G's fiscal fourth quarter.

P&G said organic sales are expected to rise 2% to 3% in the quarter; its previous estimate was 4% to 5%.

The company said foreign exchange is expected to reduce net sales by 4% in the quarter. Net sales are expected to be in the range of down 2% to 1%; it previously expected an increase of 1% to 2%.

Shares of Procter & Gamble fell 2.01% in premarket trading Wednesday to $60.96.

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Quest Software (QSFT) agreed to a higher buyout bid of $2.17 billion after Insight Venture Partners added Vector Capital as a new partner.

The new bid is for $25.75 a share, up from a competing bid of $25.50 a share that was reportedly made by Dell (DELL).

Shares of Quest Software fell 1.02% in premarket trading Wednesday to $26.25.

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Bed, Bath & Beyond (BBBY) is scheduled to report fiscal first-quarter results Wednesday, and analysts expect a profit of 84 cents a share on revenue of $2.25 billion.

Bed, Bath & Beyond announced on May 9 a deal to acquire Cost Plus (CPWM) for $495 million in cash.

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Jabil Circuit (JBL) reported adjusted fiscal third-quarter profit of 64 cents a share on revenue of $4.3 billion, in line with analysts' estimates.

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Companies scheduled to report quarterly results on Wednesday include Actuant (ATU), Goodrich (GR), Micron Technology (MU), Red Hat (RHT) and Sonic (SONC).

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-- Written by Joseph Woelfel



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