Adobe's Best Not Good Enough
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Adobe Systems (NASDAQ: ADBE) posted quarterly results late Monday that were better than Wall Street analysts expected, but the company's shares slumped in after-hours trading on current quarter sales guidance that was potentially below estimates.
Adobe's second-quarter sales were up 19% to $887 million, 1% more than analysts expected, and pro forma earnings of 50 cents a share also topped forecasts.
The company's third-quarter earnings guidance was as good or better than analysts expected, but sales guidance of $855-$885 million could potentially come in lower than Reuters Estimates of $876 million.
Adobe shares lost 2.8% in after-hours trading on the news.
Tech stocks rose sharply Monday even as blue chip shares slipped on rising oil prices and jitters ahead of earnings from Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS).
UBS downgraded Verizon (NYSE: VZ) and AT&T (NYSE: T) on the slowing economy, which also weighed on the Dow.
XM Satellite Radio (NASDAQ: XMSR) and Sirius (NASDAQ: SIRI) jumped as their merger finally neared FCC approval.
Apple (NASDAQ: AAPL) gained 2.6% on upbeat comments from RBC Capital, and Research in Motion (NASDAQ: RIMM) jumped 6% on multiple upgrades.
Broadcom (NASDAQ: BRCM) gained 3.8% on a patent win against Sirf (NASDAQ: SIRF).
The Nasdaq rose 20 to 2474, the S&P added a fraction to 1360, and the Dow lost 38 to 12,269. Volume declined to 3.65 billion shares on the NYSE, and 1.88 billion on the Nasdaq. Advancers led by an 18-12 margin on the NYSE, and 16-11 on the Nasdaq. Upside volume was 59% on the NYSE, and 72% on the Nasdaq. New highs-new lows were 58-67 on the NYSE, and 70-125 on the Nasdaq.