Adobe Beats the Street

Written By
Paul Shread
Paul Shread
Sep 15, 2006
2 minute read


Shares of Adobe Systemsjumped 7% in late trading Thursday after the company issued third-quarter results that beat Wall Street forecasts.

Adobe’s sales grew 24% to $602 million, $7 million above estimates. Pro forma earnings of 29 cents a share — which exclude charges related to the acquisition of Macromedia — were three cents better than expected.

“Q3 was a solid quarter for Adobe with revenue and earnings near or above the high end of our financial target ranges,” CEO Bruce Chizen said in a statement. “With new products launching this quarter, our outlook for the remainder of the year remains positive.”

Adobe also said it expected to meet analysts’ estimates for the fourth quarter.

Traders were cautious ahead of Friday’s consumer inflation report, with a warning by a supplier to Nokia, high import prices and downgrades to GEand Boeingall weighing on the market. Still, stocks finished well off their lows to close near break-even.

Microsoftclimbed 1.4% on an early look at its competitor to Apple’siPod.

Xilinxgained 4% despite lowering guidance.

Diodesjumped 9% after raising guidance, while Lattice Semi, Ace Command Authentidatefell on their results.

The Nasdaq tacked on 1 to 2228, the S&P 500 lost 2 to 1316, and the Dow fell 16 to 11,527. Volume declined to 2.38 billion shares on the NYSE, and 1.9 billion on the Nasdaq. Decliners led 19-13 on the NYSE, and 16-13 on the Nasdaq. Downside volume was 63% on the NYSE, and 38% on the Nasdaq. New highs-new lows were 226-47 on the NYSE, and 157-77 on the Nasdaq.


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