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Symantec Corporation (SYMC) shares were trending up in 2012, but the company released a warning on earnings that disappointed many investors and the shares plunged over 10% after the news came out.

The company makes anti-virus products for computers and sells the popular "Norton" brand. It looks like the quarter was impacted by the data back-up and storage division and also by some large orders which did not book in the quarter, but could still book later this year. Some of the inconsistency for this quarter, might be due to the fact that the company is shifting its business to a subscription-based model. Symantec now expects earnings per share to be around 38 cents which is below the expectation of 41 to 42 cents per share. The company will report earnings on May 2, 2012. Here are a few reasons to consider buying shares at the bargain price of just about $16 per share:

1) Fundamentals remain strong: The company remains bullish and the CFO expects revenue gains of about 8.7% for the full-year 2012. Symantec has a strong balance sheet, with about $2.38 billion in cash and around $2 billion in debt. The PE ratio is about 10, which is lower than many other software companies.

2) McAfee which also provides similar software security, was bought by Intel (INTC) last year, so there is potential takeover target interest in this sector.

3) The company recently announced a deal that will allow Facebook users to sign up for its anti-virus software. This could add a new source of profits in the coming quarters and create a stable revenue stream.

Key Data Points For Symantec From Yahoo Finance:
Current Share Price: $16.29
52-Week Range: $14.94 to $20.50
Dividend: none
2012 Earnings Estimate: $1.62 per share
2013 Earnings Estimate: $1.75 per share
P/E Ratio: about 10 times earnings

Data is sourced from Yahoo Finance. No guarantees or representations are made. Please consult a financial advisor before making investments.

Source: Symantec Just Became The Perfect Stock For Bargain Hunters