After opening higher, software stocks are seeing notable strength in late morning trading on Tuesday. The sector is being led higher by Adobe Systems Inc. (ADBE) after the firm beat fourth-quarter earnings estimates and projected first results above expectations.
The strength in the software sector is reflected by the 1 percent advance currently being shown by the NYSE Arca Software Index. With the upward move, the index is moving higher for a fourth straight session and is on target for its best closing level since early 2002.
Adobe is currently up by 4.5 percent after setting a three-month intraday high following its fourth quarter earnings results.
Excluding items, the firm reported fourth quarter earnings of $0.56 per share amid a revenue surge of 33 percent to $1.01 billion. Wall Street analysts expected the company to earn $0.52 per share on revenue of $988.07 million for the fourth quarter.
Looking forward to the first quarter, Adobe expects earnings in a range between $0.54 and $0.59 per share on revenues of $1.00 billion to $1.05 billion. Analysts had expected the company to earn $0.51 per share on revenue of $992.19 million for the first quarter.
In other action within the sector, Openwave Systems (OPWV) is up by 2.7 percent, bouncing off of a one-month closing low. SAP (SAP) is posting a 1.5 percent gain and is on target for a five-week closing high.
Nuance Communications (NUAN), Oracle (ORCL) and Microsoft (MSFT) are among the other gainers in the sector, while Tibco Software (TIBX) is posting a modest loss of 0.3 percent.
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