Shares of Adobe Systems ( ADBE) 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), 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.