RealTime IT News

Adobe's Sales Jump

Adobe rode new product releases to strong second-quarter results, posting sales and earnings late Thursday that topped Wall Street forecasts.

Adobe's sales rose 17% from the year-ago quarter to $745.6 million, well ahead of the $729.33 million Thomson Financial consensus estimate. Pro forma earnings of 37 cents a share were two cents better than anticipated.

"Q2 was a strong quarter, driven by the record performance of both our Creative Suite products and Acrobat," CEO Bruce Chizen said in a statement. "Assuming continued business momentum, we expect to exceed our original fiscal year revenue and profit targets."

Adobe predicted third-quarter revenue of $760 million to $800 million, compared to $781 million estimates. The company's earnings guidance of 39 to 41 cents a share was in line with 40-cent forecasts.

Adobe shares slipped 1% in late trading.

Stocks surged Thursday despite a big uptick in headline wholesale inflation, as traders took comfort in a core reading excluding energy prices that rose a tame 0.2%. Investors will have another chance to test their bullishness on Friday, when consumer inflation data is released.

Clearwire soared 23% on a wireless broadband deal with DirecTV and EchoStar.

Computer Sciences slipped 2% after missing sales estimates.

Google slipped after eBay pulled its ads in an apparent dispute between the two online giants.

Blackboard shed 7% on a convertible offering.

The Nasdaq gained 17 to 2599, the S&P 500 gained 7 to 1523, and the Dow rose 71 to 13,553. Volume declined to 2.84 billion shares on the NYSE, and 2.02 billion on the Nasdaq. Advancing issues led by a 21-11 margin on the NYSE, and 18-12 on the Nasdaq. Upside volume was 72% on the NYSE, and 72% on the Nasdaq. New highs-new lows were 209-63 on the NYSE, and 139-57 on the Nasdaq.