Symantec, the security software corporation, beat Wall Street analysts’ quarterly profit and revenue predictions with its Tuesday posting. This had the effect of sending the company’s stock shares up by 3 percent.
This boost came at an especially helpful time for Symantec, which has battled stock losses far greater than its chief competitor McAfee (19 percent vs. 5 percent), or even Microsoft, which has fallen by 15 percent. These losses all occurred since Symantec’s July acquisition of Veritas for $10.3 billion. The disturbingly fast drop-off is thought to have taken place due to issues regarding the acquisition, questions regarding Microsoft’s place in the security software market, and the exodus of a number of Symantec execs. Symantec also spent considerably more than usual on marketing and sales following the Veritas acquisition.
According to Reuters Estimates, the positive news is going to translate to per-share profits of about 25 cents. Rob Owens, a Pacific Crest Equities analyst, contributes Symantec’s improvement to a general increase in the security business. But it was beating expectations, regardless of how low they were, that directly led to the stock’s swelling. Owens describes the gain as “a bit of a brief rally for the March quarter.”
Symantec’s fourth-quarter net income reached $119 million. Their revenue increased from $712.7 million to $1.24 billion, an impressive gain attributed to worldwide growth and higher product demand. Looking ahead, the company predicts first-quarter revenue at around $1.20 billion, excluding $25 million in deferred revenue.
The 3 percent increase of Symantec stock puts the current price at $17.60 per share.
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Doug is a staff writer for Murdok. Visit Murdok for the latest eBusiness news.
