‘Solid’ earnings expected from Adobe
Adobe Systems Inc. is expected to post a drop in first quarter earnings to 37 cents a share from 45 cents last year, but that didn't deter at least one analyst from expecting "solid" financials on Tuesday.
Deutsche Bank analyst Tom Ernst Jr. kept his buy rating on San Jose-based Adobe (NASDAQ:ADBE), saying he expects to see 39 cents a share on $835 million in revenue.
The consensus number from analysts is for $827.4 million in revenue, compared to $786.4 million last year.
Ernst said he expects Adobe to benefit from an improving economy and in coming quarters should see a bump from the release of Creative Suite 5, the new version of the company's flagship software no teletrack payday loans.
Ernst raised his price target on Adobe shares to $46 from $44. Its shares dropped about 3 percent on Friday to $34.67, a few dollars below its 52-week high of $38.20.
Investors are watching to see how Adobe's acquisition of Web analytics company Omniture in October plays out, but Ernst said in his note to investors that he believes the launch of CS5 will return Adobe shares "to more typical premium levels".