“Our hearts go out to everyone in Japan. Although Adobe has a very diversified business, Japan is our second largest country from a revenue perspective and March is typically our biggest revenue month of the year there due to fiscal year-end spending. Given the uncertain business environment in Japan, we are being prudent and have reduced our revenue expectation for our second quarter by $50 million — or roughly one-third of our original Q2 revenue expectation for Japan,” said Mark Garrett, executive vice president and CFO of Adobe. How do you estimate $50 million at this point? Many moving parts in that estimate.
I do not own ABDE, but how does it go up when they are lowering EPS for the next QTR to $.47 to $.54 when expectations were much higher. I would image this is going to be the trend for most tech stocks, lowering guidance based on Japan. I do not see the NASDAQ going up on this outlook for most tech companies. Even though it might be short term, however when the Japan effect is over doesn't QEII end.
Oh well, good luck, TIF(Not a tech company, but lowered guidance based on Japan) sold off all day on it's Japan EPS effect. It will be interesting to watch ABDE tomorrow.
They planned for worse case in Japan. Wall street believe that Japan will recover very quickly. V shape recovery. I read this on Bloomberg last night. Record revenue and continued to growth show that management are best at what they are doing. The have confidence in this management team. This is my clear explaination for the stock price movement.
And by the way they get about 100m a quarter from japan so they are projecting losing 50% of the business and they still are going to put up huge numbers. The downside is just another 50m of revs. That's not something that should kill the stock. It's headed up from here because itsba good company that has tons of upside with android and a possible apple acceptance at some point if android picks up.
U r probably short but whatever. Consisting we are already though a lot of march don't u think they have a good handle on what they will br getting from japan? Fact is they are expecting a better then expected number from everywhere but japan. Don't u think almost every American company has the same problem? Should we sell the market off 10% based on japan being slow for a litle bit. Fact is manynof the major economic centers were unaffected for the most part. They didn't lose 10% of their business yet the stock sold off 10%, they just lost a portion of the 10%. Adbe is still making tons of money and thell selloff was overdone.
No position, curious about the close tomorrow. I think it will give me a clue on the overall direction of the marketin the short term. The Nasdaq looks like it is breaking down. Then again your guess is as good as mine.