Stocks to watch: Adobe, Procter & Gamble
The software maker's outlook disappoints, and the consumer-products giant reduces profit and revenue forecast.
Adobe Systems (ADBE), the publishing software maker, provided a disappointing outlook for its fiscal third quarter on Tuesday because of a "weaker demand forecast" for Europe.
Adobe forecast non-GAAP earnings of 56 cents to 61 cents a share for the three months ending in August on revenue of $1.075 billion to $1.125 billion. Analysts forecast profit of 61 cents a share on revenue of $1.133 billion. Adobe shares dropped 5.75% to $31.00 in premarket trading Wednesday.
Procter & Gamble (PG), the consumer-products giant, reduced its fourth-quarter profit and revenue forecasts because of slower-than-anticipated sales growth in developed markets.
P&G said Wednesday it expects to post core earnings for the quarter ending in June of 75 cents to 79 cents a share; its previous estimate was 79 cents to 85 cents a share. Analysts forecast core earnings of 82 cents a share in P&G's fiscal fourth quarter.
P&G said organic sales are expected to rise 2% to 3% in the quarter; its previous estimate was 4% to 5%. The company said foreign exchange is expected to reduce net sales by 4% in the quarter. Net sales are expected to be in the range of down 2% to 1%; it previously expected an increase of 1% to 2%. Shares of Procter & Gamble fell 2.01% in premarket trading Wednesday to $60.96.
Quest Software (QSFT) agreed to a higher buyout bid of $2.17 billion after Insight Venture Partners added Vector Capital as a new partner. The new bid is for $25.75 a share, up from a competing bid of $25.50 a share that was reportedly made by Dell (DELL). Shares of Quest Software fell 1.02% in premarket trading Wednesday to $26.25.
Bed, Bath & Beyond (BBBY) is scheduled to report fiscal first-quarter results Wednesday, and analysts expect a profit of 84 cents a share on revenue of $2.25 billion. Bed, Bath & Beyond announced on May 9 a deal to acquire Cost Plus (CPWM) for $495 million in cash.
Jabil Circuit (JBL) reported adjusted fiscal third-quarter profit of 64 cents a share on revenue of $4.3 billion, in line with analysts' estimates.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.