Earnings: Q1 profits of $.20 per share vs. $.35 per share consensus and a net loss of $.09 per share in Q1 last year. Profits missed big relative to lofty analyst expectations, but more than doubled last year’s net income in the same quarter. On a non-GAAP basis, Q1 earnings were $.35 per share
Revenue: Increased 2% Year-over-Year at $1.43 Billion vs. $1.47 Billion consensus, missing analyst sales estimates.
Comment: Shares of Symantec (SYMC) are trading down over 6.75% following the company’s earnings release after-the-bell, trading at $13.68 per share, compared to today’s closing price of $14.67 per share.
In the chart above, Symantec (SYMC) shares were trading above its 50-day price moving average at the closing bell today. However, due to the major disappointment after-the-bell, shares are trading below both crucial price moving averages, the 50-day and 200-day. The share price is now testing a prior 52-week low for the year hit at the end of June and beginning of July. RBC Capital Markets recently downgraded Symantec shares due to the growing concern over how software security will play out in an emerging iPad environment, where Hewlett-Packard (HPQ) and Dell (DELL) will be participating in the action soon. Also, speculative signs are showing on the Hewlett-Packard deal and whether competitor McAfee (MFE) will snatch away some of their business there soon too.
With major uncertainty growing and the rise of competitive threats to Symantec’s primary business, I would be looking elsewhere for a near-term investment that helps you sleep easy each night. Others who seek risk, you may see the triple-bottom rally about to technically take effect so stay tuned to Symantec stock for the future result.
Disclosure: No positions in the stocks mentioned.