Adobe (ADBE) Shares Mixed Ahead of Q2 Results Tonight

Shares of Adobe (Nasdaq: ADBE) are trading modestly lower ahead of the company's second quarter earnings release, expected after the market closes on June 22, 2010. The stock last traded at $33.08, down 0.15% from yesterday's close.

ADBE is expected to report quarterly EPS of $0.43 on revs of $905.51 million. For their first quarter, ADBE posted EPS of $0.40, ex-items, and revs of $858.7 million, both stronger than analyst estimates. In the same quarter last year, Adobe reported EPS of $0.45, beating views by 1c, and revs of $786.4 million, just barely nudging out estimates.

Data from Bloomberg shows that 20 analysts have a Buy rating on the shares, 8 have a Hold, and just 1 recommends to Sell. Analyst's average price target is $42, with a high of $47, and a low of $36.

Analyst Ratings Through the Quarter
In March, Deutsche Bank reiterated a Buy rating, price target $46.

Brigantine Advisors upgraded from Hold to Buy. Price target $42.

Goldman Sachs lifted their price target on Adobe (Nasdaq: ADBE) from $42 to $44, following the company's first quarter results. They added ADBE to their Conviction Buy List in late April.

In April, Citi maintained their Buy rating and price target $46, following Adobe's launch of their CS5 pack. They said that weakness typically follows a new launch.

Macquarie Securities reiterated an Outperform rating, raising their price target from $40 to $42 following the CS5 launch.

Late May saw RBC downgrade ADBE from Outperform to Sector Perform.

Summary
Janney Montgomery Scott, currently with a Buy rating and $40 fair value, thinks that the company will report revs of $926.4 million and a non-GAAP EPS of $0.46. The firm is also looking for Q3 guidance, and currently expect revs of $977.9 million and a non-GAAP EPS of $0.49 to be announced.

Piper Jaffray sees upside to Street consensus numbers due to strong checks for the CS5 and Acrobat-related NPD data. Piper says that U.S. distributors expect their revs to be up 13% Q/Q for Q210. Piper is also anticipating an in-line Q3 guidance report. Piper has an Overweight rating on the stock, and $44 price target. They are looking for an EPS of $0.42 and revs of $911.0 million.

Adobe Systems Inc. is expected to release their Q210 earnings on Tuesday, June 22, 2010, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.

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