Photo Credit: Symantec
Symantec Corporation (SYMC) Information Technology – Software | Reports May 12, After Market Closes
Key Takeaways
The next biggest threat will not likely be on the ground but one through our computers. New and old companies are working hard to make sure that those threat never become a reality. They include Cisco, Check Point, Palo Alto Networks, Imperva and Symantec to name a few. Symantec, in particular, has been hit hardest from the transition away from software security to data protection. This has reflected earnings and sales which both declined 50% last quarter compared to a year earlier. The stock is also down 34% from a year earlier and 20% year to date.
The Estimize community is looking for earnings of a quarter per share on $887.54 million in revenue, 1 cent higher than Wall Street on the bottom line and $5 million on top. Compared to a year earlier both earnings and sales are expected to fall 40%. Fortunately for Symantec, the stock is typically unscathed leading up and through earnings.
Symantec’s core Norton anti virus business has taken a beating from weak PC sales, unfavorable exchange rates and a changing environment. Competitive threats from the aforementioned companies and increased usage of smartphones and tablets have also had an adverse impact. As a result, the company is in the midst of a strategic transformation that involves a heavy focus on internet and endpoint security markets.
On the bright side, the company’s innovative products and solutions in the cloud and mobile space have slowly gained acceptance. Data security happens to be one of the fastest growing industries today which should bode well for Symantec. Furthermore, Symantec finally completed the sale of its information management division, Veritas. The deal valued at $7.4 billion will provide Symantec with funds to continue its expansion efforts. That said, this doesn’t look like the quarter that the company turns it around and posts positive growth.
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