Markets & Finance

Adobe Falls on Weaker Outlook


From Standard & Poor's Equity Research

Shares of Adobe Systems (ADBE) were lower Wednesday after the software outfit said it expects second quarter results toward the low-end of its target ranges due to weaker-than-expected demand during Spring holiday periods.

Dreamworks Animation (DWA) posts better-than-expected 12 cents vs. 44 cents first quarter EPS on a 64% revenue decline.

Clorox (CLX) posts 72 cents vs. 75 cents (including 9 cents benefit) third quarter EPS from continuing operations as higher costs and tax rate offset a 7% sales rise. It sees $1.00 to $1.06 fourth quarter EPS and $2.97 to $3.03 in fiscal year 2006 (both including stock option cost.)

Guess (GES) As a result of the comment letter from the SEC regarding its 2005 10-K which related to its acquisition of its European jeanswear licensee in the first quarter of 2005, it delays first quarter results and plans to report 30 cents to 33 cents first quarter EPS.

Time Warner (TWX) posts 32 cents vs. 9 cents first quarter earnings per share (EPS) on a 1% revenue rise. It continues to expect a 2006 full-year growth rate in adjusted operating income before depreciation and amortization will be in the high-single digits.

Yahoo (YHOO) people familiar with the situation say that Microsoft (MSFT) has considered the idea of acquiring a stake in Yahoo, and that the two companies have discussed possible options over the course of the past year, according to the Wall Street Journal.

Procter & Gamble (PG) posts 63 cents vs. 59 cents third quarter EPS on a 21% sales rise. It sees 52 cents to 54 cents fourth quarter EPS and $2.61 to $2.63 in fiscal year 2006. Results reflect dilution from the Gillette acquisition.

Electronic Data Systems (EDS) posts 13 cents vs. 8 cents first quarter EPS (pro forma) on a 7.2% revenue rise. It sees $5 billion to $5.2 billion second quarter revenue and pro forma EPS of 17 cents to 22 cents.

Advanced Digital (ADIC) agrees to be acquired by Quantum (DSS) for about $770 million, or about $12.25 cash per share, with the right to elect, in lieu of cash, 3.461 Quantum shares per Advanced Digital share held.

Cigna (CI) posts $2.11 vs. $2.24 first quarter adjusted EPS from operations on a 5.5% revenue drop. It says the decrease primarily reflects lower earnings in its health care business. It also sees $1.75 to $1.90 second quarter adjusted EPS from operations and $7.50 to $8.00 in 2006.

Qwest Communications (Q) posts 5 cents vs. 3 cents first quarter EPS on flat operating revenues.

Adobe Systems (ADBE) believes it will achieve second quarter results toward the low-end of its target ranges due to weaker-than-expected demand during Spring holiday periods in Europe and North America.

Dreamworks Animation (DWA) posts better-than-expected 12 cents vs. 44 cents first quarter EPS on a 64% revenue decline.

Qualcomm (QCOM) sees third quarter pro forma revenues at or slightly above the high end of its $1.77 billion to $1.87 billion guidance, and raises 36 cents to 38 cents pro forma EPS to between 38 cents and 40 cents.

Cognizant Technology Solutions (CTSH) posts 32 cents vs. 22 cents first quarter EPS (GAAP) on an 11% revenue rise. It sees 33 cents second quarter EPS (GAAP) on at least $317 million revenue, and at least $1.37 2006 EPS (GAAP) on at least $1.3 billion revenue.

Brooks Automation (BRKS) posts 8 cents second quarter EPS (GAAP) on a 33% sequential revenue rise. It sees third quarter revenue of $170 million to $180 million and GAAP EPS of 14 cents to 20 cents. It plans to delay filing of its 10-Q until completion of review of stock compensation.

WebMD Health (WBMD) posts 7 cents first quarter loss vs. 2 cents loss as stock-based compensation expenses offset a 48% revenue rise. It sees 7 cents loss to breakeven 2006 net on revenue of $229 million to $238 million.

Open Solutions (OPEN) posts 21 cents vs. 14 cents first quarter EPS (GAAP) on a 77% revenue rise. It sees 13 cents to 15 cents second quarter EPS on revenue of $92 million to $96 million.

Powerwave Technology (PWAV) posts 2 cents first quarter loss vs. 5 cents EPS (GAAP) despite a 19% sales rise. Management says it is extrememly disappointed with results.

Bausch & Lomb (BOL) the U.S. Centers for Disease Control & Prevention confirms additional cases of eye infection Fusarium keratitis, possibly linked to Bausch & Lomb's contact lens solution.

Answerthink (ANSR) posts lower-than-expected 4 cents vs. a penny first quarter EPS (pro forma) on a 35% revenue rise. It sees 5 cents to 7 cents second quarter pro forma EPS on revenue of $48.5 million to $51.5 million.


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