Adobe Systems Inc.
) is set to report third-quarter 2013 results on Sep 17. Last
quarter, it posted a 14.3% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors this Past Quarter
Adobe's second-quarter earnings of 24 cents were above the Zacks
Consensus Estimate due to higher revenues and solid cost
management. Revenues were up sequentially and within management's
guidance range due to the increased adoption of Adobe's Creative
Cloud. Margin expansion was limited due to the change in sales
mix, which favored lower-margin products.
Adobe provided a weak outlook for the third quarter, with
revenues expected to decrease 1.1% sequentially. Adobe expects
non-GAAP earnings per share in the range of 29 cents-35 cents,
above the Zacks Consensus Estimate of 21 cents.
The Zacks Consensus Estimate for the third quarter stands at 21
cents while that for fiscal 2013 stands at 93 cents.
Adobe has beaten estimates in three out of the last four quarters
while missing once. There were no estimate revisions for either
the third quarter or fiscal 2013 over the past 30 days. As a
result, the Zacks Consensus Estimate for both the periods remain
unchanged. The stock carries a Zacks Rank #3 (Hold).
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Other stocks that have both a positive
and a Zacks Rank #1, 2 or 3 are:
), Earnings ESP of +27.27% and a Zacks Rank #1 (Strong
), Earnings ESP of +2.11% and a Zacks Rank #2 (Buy)
), Earnings ESP of +1.79% and a Zacks Rank #2 (Buy)
ADOBE SYSTEMS (ADBE): Free Stock Analysis
CARMAX GP (CC) (KMX): Free Stock Analysis
MICRON TECH (MU): Free Stock Analysis Report
SYNNEX CORP (SNX): Free Stock Analysis Report
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