Diamonds and Dogs

10/19/17

Adobe Systems (ADBE) rocketing higher.  The digital media and marketing software firm is jumping 11% to a new all-time high following better than expected earnings and raised guidance. Adobe is targeting adjusted earnings per share of $5.50 next year, up 30% year-over-year and topping analyst expectations for $5.20. Sales are expected to rise 20% year-over-year to $8.7 billion, outpacing consensus views of $8.6 billion. Adobe stock received at least 11 upgrades with Piper Jaffray analyst as the most bullish with a price target of $195 a share.

United airlines (UAL) not doing as well as the rest. The third largest airliner is down 11% not far from a 52 week low following earnings and lowered guidance. UAL actually beat earnings expectations as sales declined year over year. The biggest disappointment was October and November unit passenger revenue to be ~flat on a year-over-year basis and December unit passenger revenue is expected to be down compared to the prior year due to holiday calendar shifts. The analysts and shareholders are not happy.