McAfee's Profits Double, Shares Increase

Oct.26.07 | About: McAfee Inc. (MFE)

Shares McAfee Inc traded higher Friday morning off the company's report that third-quarter profits doubled off strong international growth. McAfee said its net income was $62.9 million ($0.38/share) compared to $30.3 million ($0.19/share) last year. Excluding some items, the company earned $0.44/share, beating analysts' forecasts of $0.40/share. Revenue increased 12% to $322 million from $288 million a year ago. The average analyst predicted the company's revenue would be $321 million. Dave DeWalt, McAfee's CEO, said (full earnings call transcript), "Our third quarter growth was balanced across each of our corporate and consumer segments… and we drove robust expansion of our international business." The company said revenue outside North America, which accounts for 49% of sales, increased 25%, while revenue growth in North America was only 2%. The company forecasts fourth-quarter net income excluding items will come in at $0.42 - $0.46/share, basically in-line with analysts' predictions of $0.44/share. Also, McAfee said the third-quarter results released Thursday were preliminary because it plans to take a charge of $100 - $150 million associated with historical stock option grants in the quarter. Off the beat, share of McAfee climbed 3.2% to $39.00 in pre-market action Friday.

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