Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, September 18, 2009

Article Excerpt

ADOBE SYSTEMS INC., $32.95, Nasdaq symbol ADBE, will buy Omniture Inc. (Nasdaq symbol OMTR), which makes software that measures and analyzes web-site traffic. The deal will close later this year. Omniture’s software tracks the pages that site visitors view, as well as the links they click. Omniture’s 5,000 clients use this information to improve their sites, and to help determine how much to charge advertisers. Adobe makes web-design software, which it plans to modify to take advantage of Omniture’s online-marketing expertise. This should help Adobe’s customers increase their ad revenues. The company will pay $1.8 billion for Omniture. To put this in context, Adobe earned $186.1 million, or $0.35 a share, in its third quarter, which ended August 28, 2009. That’s down 30.8% from the $269.1 million, or $0.50 a share, it earned a year earlier. These figures exclude several unusual items, such as income-tax adjustments. These items lowered Adobe’s earnings by $0.09 a share in the latest quarter, and $0.15 a..