Symantec Corp. | $SYMC Stock | Shares Drop On Weak Sales Outlook

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Symantec Corp. (NASDAQ: SYMC)

 

Shares of Symantec fell 13% before the opening bell on Friday, after the company issued lower-than-expected second quarter and full year revenue guidance.

The security software firm surpassed analyst estimates after announcing a loss of 63 million on sales of $1.16 billion for its fiscal 2019 first quarter.

SYMC Earnings & Outlook

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The company posted a loss of $63 million, or $0.10 per share for its first quarter. A year ago, it had a loss of $133 million, or $0.22 per share. Excluding special items, Symantec earned $0.34, beating Thompson Reuters estimates by $0.01.

Sales came in at $1.16 billion for the quarter, compared to sales of $1.18 billion in the first quarter of the previous year. Analysts expected the company to report sales of $1.15 billion.

For its second quarter, Symantec hops to post adjusted earnings of between $0.31 and $0.35 per share on sales of between $1.13 billion and $1.16 billion. The company estimates full-year adjusted EPS in the range of $1.47 to $1.57 per share and sales of between 4.67 billion and $4.79 billion.

Symantec CEO Comments

“We are pleased with our revenue, earnings and cash flow from operations in the first quarter. We believe that Symantec is well positioned to execute against the opportunity in the cyber defense market. Following a successful fiscal year 2018 in our Enterprise Security segment, first quarter fiscal year 2019 enterprise implied billings were below expectations due to longer than expected sales cycles for large, multi-product platform sales. This pipeline management issue was isolated to North America,” said Greg Clark, Symantec CEO.

“In our Consumer Digital Safety segment, we were pleased to have strong revenue growth in the first quarter. We have adjusted our guidance for the remainder of fiscal year 2019 to reflect our outlook on our business. We believe demand remains strong across our products and services and are confident in our long-term strategy to drive organic growth and leverage our scale, innovation and capital to create industry-leading platform solutions,” Clark concluded.

Symantec Corp. Company Profile

Symantec engages in the provision of cybersecurity services globally. The company has two segments of operation: Enterprise Security and Consumer Digital Safety.

Its Enterprise Security segment offers messaging protection products, cybersecurity solutions, endpoint management, advanced web & cloud security offerings, website security, and information protection products.

The Consumer Digital Safety segment, offers Norton-branded solutions for use across mobile and desktop operating systems, home networks, and public WiFi connections to protect against online threats to small businesses, families, and individuals.

This segment also provides identity protection services, such as assisting users to remediate the impact of identity-related threats.

Additionally, the segment has a digital safety platform aimed at protecting information across customer identities and devices, as well as the connected families and homes.

It sells and markets its products/services through direct marketing, direct sales force, co-marketing programs, telesales and e-commerce platforms, system builders, distributors, retailers, employee benefits providers, internet-based resellers, internet service providers, wireless carriers, online stores, and original equipment manufacturers.

Symantec offers its products and services to households, individuals, small, medium, and large businesses; and public sector customers and government agencies.

The company was founded in 1982 and is headquartered in Mountain View, California. –Reuters

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