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RealTime IT News

Adobe Beats, Guides Higher

Adobe gave investors something to cheer about after the close on Wednesday when the company beat estimates and raised guidance.

Adobe's earnings of 28 cents a share beat analysts' estimates by 3 cents, and revenues of $319.1 million also topped forecasts. The company's fourth-quarter projections of 30-32 cents a share and revenues of $330-350 million exceed estimates of 28 cents and $332 million.

"Our exceptional Q3 performance was driven by year-over-year growth of 62 percent in our ePaper business," Adobe CEO Bruce Chizen said in a statement. "As we look to Q4 and beyond, we are optimistic about the growth opportunities across our overall business."

Adobe rose more than 4% on the news after hours, erasing a 4.3% loss in a broad market sell-off fueled by warnings from Texas Instruments and mortgage companies and the appearance of a new Osama bin Laden video on the eve of the anniversary of the Sept. 11 terrorist attacks.

The Nasdaq plunged 49 to 1823, the S&P 500 lost 12 to 1010, and the Dow fell 86 to 9420. Volume rose to 1.5 billion shares on the NYSE, but declined to 2.03 billion on the Nasdaq. Decliners led 21-10 on the NYSE, and 23-8 on the Nasdaq. Downside volume was 81% on the NYSE, and 86% on the Nasdaq. New highs-new lows were 90-10 on the NYSE, and 124-9 on the Nasdaq.

Texas Instruments plunged 7.5% on its warning, fueling a 5.3% loss in chip stocks. Xilinx fell 5.6% despite reaffirming guidance.

Sun , off 7.5%, continued to fall after the departure of Bill Joy.

3Com , down 5%, announced layoffs.

Oracle , off 4%, remains interested in PeopleSoft .

AOL , off 1.1%, is trying to rebuild its online ad business.

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