Symantec Barely Beats Wall Street Earnings Expectations

By Chris Preimesberger  |  Posted 2012-07-25 Print this article Print

Symantec's guidance back in May had projected per-share earnings of 37 cents to 38 cents on revenue between $1.65 billion and $1.66 billion, so the estimates were on target.

In addition to naming its board chairman, Steve Bennett, to replace Enrique Salem as CEO, data protection provider Symantec July 25 announced its fiscal Q1 2012 earnings report, which beat Wall Street projections.

The company's profit slipped 10 percent to $172 million from $191 million year-over-year, with revenue inching up about 1 percent to $1.67 million. Adjusted per-share earnings for the period ended June 29 rose to 43 cents from 40 cents, year-over-year. Analysts had projected revenues of $165 million.

Symantec's guidance back in May had projected per-share earnings of 37 cents to 38 cents on revenue between $1.65 billion and $1.66 billion, so the estimates were on target.

Symantec, which as owner of the Norton brand is the world's No. 1 consumer antivirus and security software seller, also reported that its consumer segment income was down 1 percent and accounted for about one-third (31 percent) of total revenue.

The Mountain View, Calif.-based company said in the report that its security and compliance segment revenue increased 7 percent year over year and comprised 30 percent of total revenue. The company's data storage and server management segment, acquired in the Veritas acquisition in 2005, slipped 2 percent from Q1 2011 and represented 35 percent of total revenue.

In its next quarter guidance, Symantec said it projects revenue to total from $1.64 billion to $1.67 billion. A survey of analysts by Thomson Reuters came up with a slightly higher expectation of $1.69 billion in earnings.

Investors apparently agreed with the change of CEOs. Symantec stock shares moved up 17 percent, the biggest one-game gain in more than 10 years for the company. Shares of common stock were selling for $15.05, up $1.89, at noon Eastern time July 25.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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