Join        Login             Stock Quote

Symantec May Report Flat Q4 EPS, Absence Of Large Storage Deals May Reflect

 May 02, 2012 02:52 PM

(R. Chandrasekaran) Security software provider Symantec (Nasdaq: SYMC) will report its fourth quarter earnings results after the market closes today. The company may report flat earnings as subscription contracts from enterprises indicated more deferred revenue than predicted earlier.

The company's results will likely reflect weaker license performance in the absence of a large number of license for rich storage apart from server management agreements compared to the year-ago quarter.

The consumer segment may contribute a little more than 30 percent to overall revenue for Symantec, while security and compliance could represent another 30 percent of revenues. Revenues from storage and server management could add less than 36 percent. Projections may fall further as there were only a few large size deals.

[Related -Could These Crime Fighters Be The Next Tech Superstars?]

Currently, Wall Street analysts estimate the company will deliver earnings of 38 cents a share and revenues of $1.68 billion for the fourth quarter. Last year, the company earned 38 cents a share and revenues of $1.67 billion.

Symantec recently reduced its EPS outlook to about 38 cents a share from 41 – 42 cents a share predicted earlier. Similarly, the company cut its revenue forecast to $1.72 billion from its previous $1.73 billion estimate.

Analysts  predicted the company would earn 42 cents just seven days ago. Their revision comes after Symantec warning. During the last four quarters, the company's earnings have topped expectations in three quarters and met with consensus in one quarter.

[Related -Futures Mixed Ahead Of FOMC Statement; Symantec Corporation (SYMC) Gains]

In the third quarter, the company earned a $240 million profit, 82 percent higher than $132 million and earnings vaulted 88 percent to 32 cents a share from the year earlier quarter's 17 cents a share. On an adjusted basis, profit grew 15.4 percent to $314 million from $272 million and earnings increased 20 percent to 42 cents a share from 35 cents a share in the previous year quarter.

Revenues were 7 percent higher at $1.72 billion than $1.60 billion recorded in the year-ago quarter. Both earnings and revenues were ahead of Street expectations of 41 cents a share and $1.71 billion.

After the third quarter results, shares of Symantec lost 3.1 percent based on April 30 prices, while the Nasdaq advanced 8.1 percent. In the 52-week period, the stock hit a high of $20.50 and a low of $14.94.

Symantec may report one cent higher than analysts' consensus number, helped by adjusted gross margin and operating margin expansion. However, the focus will be on the outlook for the next fiscal year.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.