STOCKS TO WATCH: Adobe Systems, AVT and IDT

3 min read

Expect the following technology stocks to be among Thursday's most actively traded issues: Adobe Systems, AVT, IDT, Performance Technologies and and Tecnomatix.

  • Adobe Systems (Nasdaq: ADBE)

    The software developer should see higher volume Thursday ahead of its second-quarter earnings report.

    First Call Corp. consensus is predicting a profit of 48 cents a share.

    Jay Vleeschhouwer, an analyst at Merrill Lynch, maintains a “buy” recommendation and expects it to earn 48 cents a share on sales of around $295 million.

    “Adobe’s been a strong performer for most of the past year,” Vleeschhouwer said. “It’s really benefiting from some of its new products as well as upgrades of their popular programs like PhotoShop and Illustrator.”

    Last quarter, Adobe earned $64.6 million, or 51 cents a share, on sales of $282.2 million.

    Its shares closed off 5 1/16 to 121 7/8 Wednesday.

  • AVT Corp. (Nasdaq: AVTC)

    Expect AVT shares to slide Thursday after the company warned that its second-quarter sales and earnings will fall short of analysts' estimates.

    AVT, which makes business-to-business communications tools, said it now expects to earn between 5 cents to 9 cents a share in the quarter.

    First Call Corp. consensus pegged it for a profit of 11 cents a share.

    "We are clearly disappointed that our business has not returned to the levels we had expected for the second quarter," said CEO Richard LaPorte in a prepared release.

    He also cited a slowdown in the business telephone equipment industry and sales force attrition.

    AVT now expects sales to fall somewhere between $24 million and $27 million, well below the $31.9 million it recorded in the year-ago quarter.

    LaPorte also warned shareholders that near-term financial results could continue to disappoint.

    "Given the uncertainties influencing our company and our industry, it is prudent for us to caution our shareholders that our financial results may continue to be adversely affected in the near term," he said.

    Its shares closed off 29/32 to 7 ahead of the profit warning.

  • IDT Corp. (Nasdaq: IDTC)

    IDT shares could move lower Thursday after it missed analysts' estimates in its third quarter Wednesday, posting a loss of $4.5 million, or 12 cents a share, on sales of $256.1 million.

    Ahead of the earnings report, IDT shares closed off 1 1/16 to 28 3/16.

    First Call Corp. consensus pegged IDT for a profit of 8 cents a share in the quarter.

    Including gains made from investments, IDT pocketed $129.6 million, or $3.41 a share, in the quarter. Those investments are mainly related to the conversion of the its interest in two joint ventures with Terra Networks (Nasdaq: TRRA).

    The $256.1 million in sales marks a 40 percent improvement from the year-ago quarter when it earned $2.7 million, or 7 cents a share, on sales of $183.4 million.

    This marks the second consecutive quarter that IDT has missed analysts' estimates.

    Last quarter, it posted a profit of $1.5 million, or 4 cents a share, on sales of $271.5 million.

    Its shares moved up to a 52-week high of 45 in March after falling to a low of 13 1/2 in August.

    Both analysts following the stock rate it a "strong buy."

    Analysts are expecting it to earn 28 cents a share in the quarter.

  • Performance Technologies Inc. (Nasdaq: PTIX)

    The maker of communications equipment warned that it expects second-quarter earnings to be 8 cents to 9 cents a share. That's below an already- lowered average estimate of 11 cents from four analysts polled by First Call.

    Performance Technologies fell 3/16 to 11 1/8 at Wednesday's close.

  • Tecnomatix Technologies Ltd. (Nasdaq: TCNO)

    The maker of manufacturing software said it expects to report second-quarter earnings before items of break-even or ``slightly better'' results. The company said it had lower-than-expected revenue in its Detroit operations and higher expenses in development, sales and marketing.

    Tecnomatix was down 3/16 to 23 7/8 before Wednesday's bell.