Symantec Stock Rises Despite Lower Profit Report

By Chris Preimesberger  |  Posted 2010-10-27 Print this article Print

Symantec posted a profit of $136 million, down from $155 million. But the results beat forecasts.

Data storage and security provider Symantec revealed its fiscal second-quarter earnings results Oct. 27, reporting that its profits dipped 12 percent due mostly to higher costs related to sales and marketing projects.

In the quarter ending Sept. 30, Symantec posted a profit of $136 million, or 17 cents/share, down from $155 million, or 19 cents/share, from the same quarter a year ago. Revenue was flat at $1.48 billion.

Nonetheless, Symantec stock prices increased by 7 percent in after-hours trading Oct. 27 to about $17 for two main reasons: first, because the results beat the company's conservative forecast, and secondly because of the company's new Q3 earnings forecast of 32 cents cents a share, based on revenue of $1.57 billion to $1.59 billion.

Back in July, Symantec had predicted earnings of 27 cents to 28 cents on revenue of $1.45 billion to $1.47 billion, below Wall Street's projections at the time. Thomson Reuters' survey of analysts had forecast 32 cents and $1.46 billion.

"Our new e-commerce platform completed its first anniverary of operations with installations in 230 countries in 18 languages, and it supports 24 currencies. Overall, our enterprise business closed the quarter on a very strong note," Symantec CFO James Beer said on the earnings conference call to analysts and journalists.

"Our ability to develop more targeted programs is benefitting renewals, as well as our up-selling and cross-selling efforts. We also had good results around our backup and archiving and our hosted services."

Sales of security software--both in enterprise and in the consumer realm--have remained brisk despite the continuing macroeconomic slowdown, because keeping viruses and hackers out of a system remains a top priority. 

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

Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel