Earnings Sneak Peek: Can Adobe (ADBE) Continue To Ride Good News Out Of Apple (AAPL)?

Earnings Estimates (High/Mean/Low): $0.52 / $0.491 / $0.48

San Jose-based Adobe Systems Inc. (NASDAQ: ADBE) is set to report 3Q earnings this Tuesday after the bell, and if recent trading is any indication, investors are expecting an upside Q.  After falling as much as 30% on the year at its 2010 lows, shares received a much needed boost on Sept. 9 when Apple (NASDAQ: AAPL) announced plans to significantly relax the compliance restrictions of its much-vaunted App Store.  Management at Adobe had long been irked by Apple’s unwillingness to allow developers to use its popular Flash software to develop apps, but pressure from an increasingly popular Adroid platform seems to have swung the pendulum in ADBE’s favor.

ADBE popped as much as 13.4% the day of AAPL’s announcement and has benefited from additional positive news/rumors in the interim, though it did finish up Friday’s trade at just below the 9/9 highs, closing at $32.78.  Last Wednesday, Adobe made a joint announcement with Intel (NASDAQ: INTC) stating that the two tech bellwethers planned to enable developers to distribute and monetize Adobe AIR applications and games via Intel AppUp center storefronts.  Using the new Adobe application distribution platform beta, code named “Melrose,” developers and publishers can now sell and distribute AIR applications to potentially millions of users while monitoring sales and downloads.  Furthermore, rumors over the weekend are beginning to suggest that ADBE may have a tablet in the works.

As a company with an $17 billion market cap, news out of ADBE will always be received as important.  Recent happenings discussed herein will only fuel Street anticipation.  ADBE has beaten estimates the past eleven quarters in a row, and mean 3Q estimates of $0.491 represent a 40% increase YoY and a 12% gain sequentially.  The conference call is currently scheduled for 5 P.M. EST.

Disclosure: No holdings in ADBE.

More from The Cheat Sheet