Adobe Beats The Street
Adobe (Quote, Chart) reported earnings late Thursday that topped Wall Street forecasts, driven by strong sales of its Creative Suite and Acrobat products.
"These results reflect the overall strength of our business which, when combined with our pending acquisition of Macromedia, will position us for even greater success in the future," Adobe CEO Bruce Chizen said in a statement.
Adobe's earnings rose 39% to 29 cents a share, beating estimates by two cents, and sales of $487 million were in line with forecasts. The company's guidance for the fourth quarter — earnings of 27-29 cents and sales of $490-$510 million — were largely in line with estimates, if a little light on the top line.
Shares of Adobe traded fractionally higher after hours.
The broader market was as mixed as the economic news on Thursday: slower growth in Northeast manufacturing, rising inflation, a big jump in jobless claims and a slight decline in oil prices left traders wondering what to think ahead of a key Federal Reserve meeting on interest rates next week.
The Nasdaq lost 3 to 2146, the S&P rose half a point to 1227, and the Dow climbed 13 to 10,558. Volume rose to 2.08 billion shares on the NYSE, and 1.76 billion on the Nasdaq. Decliners led 16-15 on the NYSE, and 17-12 on the Nasdaq. Downside volume was 51% on the NYSE, and 66% on the Nasdaq. New highs-new lows were 123-52 on the NYSE, and 72-44 on the Nasdaq.
Time Warner (Quote, Chart) rose 3% on reports that Microsoft (Quote, Chart) and Google (Quote, Chart) may make a play for AOL. Google's stock ended the day down slightly after the company completed its $4 billion secondary stock offering.
McAfee (Quote, Chart) fell 6.4% on a downgrade.
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