Symantec Barely Beats Wall Street Earnings Expectations
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.