Adobe Inc.
NASDAQ symbol ADBE, makes software that lets computer users easily create, edit and share electronic documents in the popular Acrobat PDF format. It also makes software that graphic designers use to create print publications and web pages.
ADOBE SYSTEMS INC. $29.16 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 525.8 million; Market cap: $14.5 billion; No dividends paid) reported sharply higher earnings in its latest quarter. In the three months ended June 3, 2011, Adobe’s earnings rose 60.7%, to $0.45 from $0.28 a year earlier. Revenue rose 8.5%, to $1.0 billion from $943.0 million. The company recently upgraded its Creative Suite package of photo-editing and desktop-publishing programs. However, Adobe is seeing weaker demand in Europe. Adobe holds cash of $2.6 billion, or about $5.20 a share. The company’s long-term debt of $1.5 billion represents a low 10.3% of its market cap....
Adobe Systems Inc., Nasdaq symbol ADBE, makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use the tech stock’s software to create print publications and web pages. The company also makes Adobe Flash, which lets web site developers make web pages more interactive by adding animation and video. The company reports that its earnings jumped 54.4% in its 2011 second quarter, which ended June 3, 3011, to $229.4 million from $148.6 million a year earlier. The tech stock’s earnings per share rose 60.7%, to $0.45 from $0.28, on fewer shares outstanding. If you exclude one-time items, such as restructuring charges and investment losses, the tech stock’s earnings per share would have risen 25.0%, to $0.55 from $0.44. On this basis, the latest earnings beat the consensus estimate of $0.51 a share....
PLEASE NOTE: Our next Hotline will go out on Thursday, June 30, 2011. FEDEX CORP., $91.78, New York symbol FDX, delivers packages and documents in the U.S. and over 220 countries and territories. For the fiscal year ended May 31, 2011, FedEx’s revenue rose 13.2%, to $39.3 billion from $34.7 billion in 2010. The company earned $1.45 billion, or $4.57 a share, up 22.6% from $1.2 billion, or $3.76 a share. If you exclude unusual items, FedEx earned $4.90 a share in 2011. That matched the consensus estimate....
PLEASE NOTE: Our next Hotline will go out on Thursday, June 30, 2011. WESTJET AIRLINES, $14.69, symbol WJA on Toronto, is now in the process of upgrading its “interline” agreement with Delta Air Lines to a full “code sharing” arrangement. Delta is the second-busiest U.S. airline carrier by traffic, behind United Airlines. WestJet signed an interline agreement with Delta in February 2011. Under these agreements, two airlines co-operate on flights and baggage handling. WestJet has similar deals with Air France-KLM, China Airways of Taiwan, and Hong Kong-based Dragonair. As well, the company recently signed interline agreements with Australia’s Qantas Airlines and Japan Airlines Corp....
ADOBE SYSTEMS INC. $34.87 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 504.5 million; Market cap: $17.5 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use Adobe’s software to create print publications and web pages. The company also makes Adobe Flash, which lets web site developers make web pages more interactive by adding animation and video. Computer users can download Adobe’s Flash Player viewer for free....
ADOBE SYSTEMS INC. $34 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 504.5 million; Market cap: $17.2 billion; Price-to-sales ratio: 4.2; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes software that lets computer users create documents in the popular PDF format. It also makes software that lets graphic designers create print publications and web pages. In its 2011 first quarter, which ended March 4, 2011, Adobe earned $298.1 million. That’s up 40.8% from $211.7 million a year earlier. Earnings per share rose 45.0% to $0.58 from $0.40, on fewer shares outstanding. These figures exclude several unusual items, such as gains on investment sales and income-tax adjustments. Sales rose 19.7%, to a record $1.0 billion from $858.7 million. Sales rose across all of Adobe’s divisions except print and publishing, where sales fell 1.8%. The uncertain business environment in Japan following the earthquake and tsunami will probably cut Adobe’s second-quarter revenue by about $50 million. Japan is Adobe’s second-biggest source of revenue by country....
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away. Today’s tip: “How your stock research can benefit from price-to-sales ratios.” We display a price-to-sales or p/s ratio with every stock we cover in our newsletters, including Wall Street Stock Forecaster, our newsletter for investing in U.S. stocks....
Microsoft and Adobe should see a continued rise in demand for their software as the improving economy prompts businesses to upgrade their computers. Both firms also spend heavily on research, which helps them dominate their markets. However, we prefer Microsoft due to its steadier cash flows and dividend. MICROSOFT CORP. $26 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 8.4 billion; Market cap: $218.4 billion; Price-to-sales ratio: 3.3; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.microsoft.com) is the world’s largest software company. It gets 75% of its revenue from its Windows operating system and its Office suite of business programs. In its 2011 second quarter, which ended December 31, 2010, Microsoft’s earnings fell 0.4%, to $6.6 billion from $6.7 billion a year earlier. However, earnings per share rose 4.1%, to $0.77 from $0.74, on fewer shares outstanding. Revenue rose 4.9%, to $20.0 billion from $19.0 billion....
Adobe Systems Inc., symbol ADBE on Nasdaq, makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use the technology stock’s software to create print publications and web pages. We analyze Adobe in Wall Street Stock Forecaster, our newsletter that focuses on stocks in the U.S. market. The company also makes Adobe Flash, which lets web site developers make web pages more interactive by adding animation and video. Computer users can download the technology stock’s Flash Player viewer for free....
AT&T INC., $28.85, New York symbol T, has agreed to buy T-Mobile from Germany’s Deutsche Telekom AG. T-Mobile is the fourth-largest provider of wireless services in the U.S., with 33.7 million subscribers. Adding T-Mobile would make AT&T the largest wireless carrier in the U.S., with 130 million subscribers. This is huge purchase for AT&T, which will pay $39 billion for T-Mobile. That’s equal to 23% of its $170.5-billion market cap. AT&T will pay $25 billion in cash, and the remaining $14 billion in stock. That would give Deutsche Telekom an 8% stake in AT&T....