Opening View: Goldman Sachs, Adobe Systems, and Best Buy Report Earnings

In earnings news, Adobe Systems (ADBE: sentiment, chart, options) said that second-quarter profit rose to $214.9 million, or 40 cents per share, from $152.5 million, or 25 cents per share, last year. Excluding items, earnings arrived at 50 cents per share, above analyst expectations for 46 cents. Revenue rose to $886.9 million, also topping expectations for $880.1 million. For the third quarter, ADBE said it expects earnings of 45 cent to 47 cents per share on a non-GAAP basis, well above current expectations for 39 cents per share. The company also noted that third-quarter operating margins would arrive at about 38.5% on a non-GAAP basis.

In financials, Goldman Sachs (GS: sentiment, chart, options) reported a second-quarter profit of $2.09 billion, or $4.58 per share, blowing past the Street's estimate for a profit of $3.42 per share. Revenue for the quarter came in at $9.42 billion, well ahead of the consensus view of $8.74 billion. "Given the difficult market conditions, we are particularly pleased to be able to report strong results for the second quarter," said Lloyd Blankfein, the company's chairman and CEO. "We continue to benefit from our strong client franchise, a broad and diverse set of businesses and the deep commitment and experience of our people."

Best Buy (BBY: sentiment, chart, options) reported first-quarter earnings of $179 million, or 43 cents per share, up from last year's 39 cents per share. Revenue rose 13% to $8.99 billion from $7.93 billion last year. The company also affirmed its fiscal 2009 earnings outlook of $3.25 to $3.40 per share, with revenue of $43 billion to $44 billion.

In other news, Kraft Foods (KFT: sentiment, chart, options) announced that it plans to spin off outstanding shares of Cable Holdco. The split is related to the merger of Cable Holdco and Ralcorp Mailman, a subsidiary of Ralcorp Holdings. As part of the deal, Kraft shareholders will have the option to exchange some or all of their Kraft common stock in exchange for Cable Holdco common stock, which will then be exchanged for shares of Ralcorp common stock after the pending merger. The terms of the exchange will be announced at a later date.

Finally, PepsiCo (PEP: sentiment, chart, options) reiterated its fiscal 2008 earnings outlook of at least $3.72 per share and said it expects disruptions during the next few weeks at its Quaker manufacturing facility in Cedar Rapids, Iowa, due to flooding. "While the situation assessment is ongoing, PepsiCo expects disruptions to normal service over the next few weeks, including product allocation to the retail trade of some Quaker foods and snacks items."

Opening View: Goldman Sachs, Adobe Systems, and Best Buy Report Earnings