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Adobe Systems Incorporated Message Board

  • jamesjr.estey jamesjr.estey Dec 12, 2013 6:15 PM Flag

    Does this make any sense?

    Per Bloomberg: "Net income for the fiscal fourth quarter slumped 71 percent to $65.3 million, or 13 cents a share, compared with analysts’ average estimate of 14 cents. Profit is suffering as Adobe sells fewer full versions of its desktop software priced as high as $2,600 amid the shift to subscribers for Creative Cloud, which costs $50 a month per user." Next Quarter and full year estimates for both Revenue and Earnings were REDUCED! EPS in FY 2014 is now expected to be $1.10 vs. a previously expected $1.59 with Revenue Guidance as FLAT! That is a huge decrease in expected earnings! Okay Cloud software subscribers increased by 402,000 to 1.44 million, BUT there is no commensurate increase in earnings or revenue, so who really care???

    Sentiment: Strong Sell

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    • Let me get this right! SO it jumps 7 percent on subscriber growth, but yet they lower the next 2 years guidance? Subscribers all that matter? Evidently subscribers dont help revenues, otherwise why would they lower guidance. If you looked at call options/open interest you could see it was leveraged big time on call side.
      Arent you glad manipulating market makers move these stocks to help their trader friends.
      #$%$ hilarious!
      SEC MUCH?

    • This is complete BS. Someone is manipulating the heck out of this stock. Im sure there is some big option call that someone wants to get used. This kind of trading should be illegal.

    • No it doesn#$%$ bubbilicious. Profits keep shrinking and stock keeps going up. Fun until the music stops. Who do you think signs up for recurring charges every month for Creative Suite-those pros who have to. How many of them do you think there are? Probably less than have already signed up. Do you think the average consumer wants to pay $ every month for the rest of his life for this? Perhaps IPhoto, Aperature, or whatever it is Microsoft offers is sufficient and doesn't require a monthly transfusion of money to the company.

    • it makes no sense at all, and their YoY performance is also down.
      they are selling promises of 2015 and 2016 - while insiders sell stock.
      it's asinine. probably the only solace we have is that if you look at Salesforce,
      their earnings peak on Nov 18th was $59 and today they are struggling to hold $50.

      Sentiment: Strong Sell

      • 1 Reply to snow.ball7
      • look at how terrible this is... even the 2015 and 2016 projections are UNDER consensus.
        Who in their right mind would trust Adobe's projections ??????????

        NEWS: Adobe Systems Inc., the maker of Photoshop software, reported Thursday that its fiscal fourth-quarter profit shrank as its shift to cloud-based software cuts into profitability. Its forecast fell short of Wall Street expectations, but subscribers grew, helping lift shares in extended trading.

        DETAILS: The company's subscription-based revenue jumped 85 percent to $359.7 million. Paid Creative Cloud subscriptions grew 402,000 from the end of the fiscal third quarter, to 1.4 million. But product sales slumped by a third from a year ago, to $567.2 million.

        Adobe's profitability was also hampered by restructuring charges, compensation expenses and other special items.

        NUMBERS: Adobe earned $65.3 million, or 13 cents per share, for the quarter that ended on Nov. 29. That's down from $222.3 million, or 44 cents per share, in the same months last year. Excluding one-time items, earnings came to 32 cents per share, matching analysts' prediction.

        Revenue fell 10 percent to $1.04 billion. Analysts polled by FactSet expected $1.03 billion.

        FUTURE: Adobe expects to earn 22 to 28 cents per share, excluding one-time items, on revenue of $950 million to $1 billion for its current quarter. Analysts were anticipating 33 cents per share on revenue of $1.02 billion.

        For fiscal year 2014, it expects earnings of $1.10 per share, with revenue unchanged from the $4.06 billion generated in 2013. Analysts had forecast earnings of $1.61 per share for the year on revenue of $4.35 billion.

        Over the longer term, Adobe expects earnings of $2 per share in fiscal 2015 and of at least $3 per share the following year. Wall Street had predicted earnings of $2.30 per share and $3.48 per share for those years.

        STOCK: Shares fell 65 cents to close regular trading at $53.99 but increased $4.01, or 7.4 percent, to $58 in after-hours tradi

        Sentiment: Strong Sell

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