Thu, Nov. 5, 2:58 PM
- While many security tech peers sell off in response to FireEye's soft top-line results/guidance, Symantec (SYMC - unchanged) is nearly flat after beating FQ2 EPS estimates and posting in-line revenue.
- A $500M accelerated buyback has been authorized. It follows a $1.5B August increase to Symantec's buyback authorization to $2.6B. $250M was spent on buybacks over the first 6 months of FY16.
- Guidance has been provided for what will be left of Symantec (i.e. its security software ops) once the $8B sale of the company's Veritas storage software unit closes (expected by Jan. 1). The security ops are expected to have FQ3 revenue of $890M-$920M (-2% to -5% Y/Y exc. forex) and EPS of $0.22-$0.25, and FQ4 revenue of $885M-$915M Y/Y (-1% to -4% Y/Y exc. forex) and EPS of $0.24-$0.27.
- With share losses and forex continuing to weigh, consumer security revenue fell 13% Y/Y in FQ2 to $420M, and enterprise security revenue 5% to $485M. On a forex-adjusted basis, consumer revenue is expected to drop 6%-8% Y/Y in FQ3 and 5%-8% in FQ4. Enterprise revenue is expected to be down 2% to up 2% forex-adjusted in FQ3, and down 1% to up 3% in FQ4.
- FQ2 results, PR
Thu, Nov. 5, 7:39 AM
Wed, Nov. 4, 5:30 PM
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Tue, Aug. 11, 11:10 AM
- In addition to missing FQ1 estimates, Symantec (NASDAQ:SYMC) is guiding for FQ2 revenue of $1.485B-$1.525B and EPS of $0.40-$0.43, below a consensus of $1.54B and $0.45. FY16 (ends March '16) guidance is revenue of $6.21B-$6.35B and EPS of $1.80-$1.90, in-line with a consensus of $6.27B and $1.86.
- Segment/regional performance: Consumer security revenue (hurt by both rival paid products/services and Microsoft's free offerings) fell 19% Y/Y in FQ1 to $430M, and enterprise security revenue fell 13% to $482M (share loss). Ahead of its sale to Carlyle, the Information Management (Veritas, storage software) unit saw revenue drop 10% to $587M. U.S. revenue was down 8%, and international 19%. Forex had a 7% impact on total revenue growth.
- Financials: With the help of job cuts, GAAP operating expenses fell 5% Y/Y to $1.04B. The deferred revenue balance fell 8% to $3.42B. $90M was spent on buybacks. Symantec ended FQ1 with $3.7B in cash, and $2.1B in debt.
- FQ1 results, PR, Veritas sale
- Update: Credit Suisse's Phillip Winslow has downgraded Symantec to Neutral. He argues the $1.5B tax liability produced by the Vertias sale - it wouldn't exist if a spinoff occurred - represents a destruction of shareholder value, and is also concerned about how Symantec might spend some of the proceeds.
Tue, Aug. 11, 7:04 AM
Mon, Aug. 10, 5:35 PM
Fri, May 15, 2:07 PM
- Symantec (NASDAQ:SYMC) has fallen below $25 after missing FQ4 estimates and offering light FQ1/FY16 guidance. No downgrades have arrived in response.
- On the CC (transcript), the company blamed its FQ4 miss on an $8M increase in forex pressures relative to guidance - revenue fell 6% Y/Y in dollars, but was up 1% in constant currency - and an $11M true-up for employee defined benefit plans. It added FQ1 guidance would be higher if the quarter didn't have one less week than the year-ago period.
- Segment performance: Consumer security sales (hurt by competition and Microsoft's free offerings) remained under pressure in FQ4, falling 13% Y/Y to $438M (worse than FQ3's -11%). Enterprise security sales fell 6% to $491M, worse than FQ3's -4% and underperforming peers seeing strong growth amid rising corporate cybersecurity spend. The Veritas Information Management unit (set to be spun off) saw revenue fall 1% to $619M, after rising 1% in FQ3.
- Total license revenue rose 2% to $200M, while content, subscription, and maintenance revenue fell 7% to $1.35B. The deferred revenue balance fell 6% to $3.66B.
- Forex contributed to an 11% drop in international revenue to $758M; U.S. revenue fell 2% to $790M. In spite of lower sales, operating expenses fell to 56.2% of revenue from 56.5% a year ago thanks to cost cuts. $500M was spent on buybacks.
- FQ4 results, PR
Thu, May 14, 4:07 PM
- Symantec (NASDAQ:SYMC): FQ4 EPS of $0.43 misses by $0.01.
- Revenue of $1.55B (-6.1% Y/Y) misses by $10M.
- Expects FQ1 revenue of $1.5B-$1.54B and EPS of $0.41-$0.44, below a consensus of $1.62B and $0.45.
- Expects FY16 (ends March '16) revenue of $6.21B-$6.35B and EPS of $1.80-$1.90, almost entirely below a consensus of $6.38B and $1.90.
- Shares -3.4% AH
- Press Release
Wed, May 13, 5:35 PM
Thu, Feb. 5, 4:05 PM
Mon, Jan. 5, 1:37 PM
- Symantec's (SYMC -0.8%) FQ3 report will be posted after the close on Thursday, February 5. A CC will be held at 5PM ET (webcast on IR site).
- Consensus is for revenue of $1.67B (-1.8% Y/Y), and EPS of $0.49. Symantec, which remains set to split its security and storage software ops by year's end, provided below-consensus FQ3 and FY15 revenue guidance in November. EPS guidance was a little healthier.
Nov. 6, 2014, 3:42 PM
- "As a result of restructuring, we expect headcount reductions of approximately 10%," Symantec (SYMC -0.5%) disclosed on its FQ2 CC (transcript). The company expects to record $100M-$120M in restructuring charges, about half of which will be recorded in FY15 (ends March '15).
- Symantec also expects to record "separation costs" of $80M-$100M over the next five quarters related to its planned breakup.
- The company already carried out a string of job cuts under the departed Steve Bennett. Opex was down 3% Y/Y in FQ2 to $894M.
- Shares are off slightly post-earnings, after having gone into the report near a 52-week high of $25.35. Ahead of the breakup, Symantec's security software/services units saw revenue collectively fall 4% Y/Y in FQ2 to $996M, and its storage software/services unit saw revenue rise 3% to $621M.
- FQ2 results, guidance, PR
Nov. 5, 2014, 5:36 PM
Nov. 5, 2014, 4:03 PM
Aug. 6, 2014, 4:21 PM
- Though it beat FQ1 estimates, Symantec (NASDAQ:SYMC) is guiding for FQ2 revenue of $1.6B-$1.64B and EPS of $0.40-$0.44, unfavorable to a consensus of $1.63B and $0.45. FY15 (ends March '15) guidance is for revenue of $6.63B-$6.77B and EPS of $1.84-$1.92, in-line with a consensus of $6.69B and $1.88.
- License revenue tumbled 15% Y/Y in FQ1 to $161M. Content, subscription & maintenance revenue rose 4% to $1.57B. Symantec's deferred revenue balance fell 4% to $3.71B.
- Information Security (enterprise security) revenue +3% Y/Y to $345M, user productivity/protection (PC/mobile security) +1% to $740M, information management (storage software) +1% to $650M. User productivity/protection made up a majority of segment op. profit ($270M out of $427M).
- Opex was 58.7% of revenue vs. 58.4% a year ago. $125M was spent on stock repurchases.
- SYMC +0.3% AH. FQ2 results, PR.
Aug. 6, 2014, 4:13 PM
Symantec Corp provides security, backup and availability solutions. Its products and services protect people and information in any environment, from the smallest mobile device, to the enterprise data center, to cloud-based systems.
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