Adobe Earnings Preview

September 16, 2011 in Partner Posts

Adobe Systems reports its Q3 earnings after the close on September 21. Citi expects the results to come in above the $0.50 estimate, which is driven by CS5. Street estimates are between $0.46-$0.50.

Some things to listen for in the conference call are commentary around expenses and margins, and details around financial impact and timing of Day Software acquisition. Also listen for feedback on the lower Apple iOS restrictions, impact of PC refresh on CS5 adoption, and strength from long tail of cycle and timing of large enterprise upgrades.

Citi continues to believe Adobe is the top pick in software. The bank recommend ADBE with expectations of upward earnings revisions with top line strength driving EPS. Citi has a Buy rating on Adobe with a target price of $42

ADBE closed Thursday at $32.85