S&P 500 (NYSE:SPY) component Symantec (NASDAQ:SYMC) will unveil its latest earnings on Wednesday, October 24, 2012. Symantec provides security, storage and systems management solutions to help businesses and consumers secure and manage their information.
Symantec Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 34 cents per share, no change from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 36 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 34 cents during the last month. Analysts are projecting profit to rise by 5% versus last year to $1.46.
Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of 38 cents per share versus a mean estimate of 33 cents. Two quarters ago, it reported profit of 33 cents per share.
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Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $2.81 (18.8%), from $14.96 to $17.77. The stock price saw one of its best stretches over the last year between July 30, 2012 and August 7, 2012, when shares rose for seven straight days, increasing 10.9% (+$1.69) over that span. It saw one of its worst periods between September 13, 2012 and September 26, 2012 when shares fell for 10 straight days, dropping 5.9% (-$1.12) over that span.
A Look Back: In the first quarter, profit fell 9.9% to $172 million (24 cents a share) from $191 million (25 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 0.9% to $1.67 billion from $1.65 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.02 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.03 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.5% to $5.11 billion while assets rose 12.6% to $5.22 billion.
After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 33.8% in the second quarter of the last fiscal year, 81.8% in the third quarter of the last fiscal year and more than threefold in the fourth quarter of the last fiscal year before declining in the first quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 13.6% in the second quarter of the last fiscal year, 6.9% in the third quarter of the last fiscal year and 0.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Analyst Ratings: With 15 analysts rating the stock a buy, none rating it a sell and 12 rating the stock a hold, there are indications of a bullish stance by analysts.
Wall St. Revenue Expectations: Analysts predict a decline of 1.2% in revenue from the year-earlier quarter to $1.66 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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