Symantec Corp Earnings: Earnings Higher Than Expected
S&P 500 (NYSE:SPY) component Symantec Corporation (NASDAQ:SYMC) reported net income above Wall Street’s expectations for the fourth quarter. Symantec provides security, storage and systems management solutions to help businesses and consumers secure and manage their information.
Investing Insights: What’s the Future of Microsoft’s Stock?
Symantec Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Symantec Corporation rose to $559 million (77 cents per share) vs. $168 million (22 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year-earlier quarter.
Revenue: Rose 0.5% to $1.68 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Symantec Corporation beat the mean analyst estimate of 33 cents per share. Analysts were expecting revenue of $1.69 billion.
Quoting Management: “Year over year declines in license sales and a larger proportion of ratable subscription sales caused revenue and EPS to come in below our expectations for the fourth quarter. However, a greater amount of our billings went to the balance sheet, driving record deferred revenue,” said James Beer, executive vice president and chief financial officer, Symantec. “In fiscal year 2012, our business generated $1.9 billion of cash flow from operations, up six percent from fiscal year 2011, driven by record results for each of our key financial metrics and across all of our geographies.”
The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 81.8% and in the second quarter, the figure rose 33.8%.
Revenue has increased for four consecutive quarters. Revenue increased 6.9% to $1.72 billion in the third quarter. The figure rose 13.6% in the second quarter from the year earlier and climbed 15.4% in the first quarter from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 36 cents versus a mean estimate of net income of 37 cents per share.
Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the first quarter of the next fiscal year is now 34 cents per share, down from 38 cents. For the fiscal year, the average estimate has moved down from $1.47 a share to $1.44 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: