McAfee Gets Set for Third-Quarter Boost

SANTA CLARA, Calif. (TheStreet) -- McAfee(MFE Quote) is expected to continue its upward trajectory when it reports its third-quarter results after market close Thursday, boosted by growing demand for the company's cybersecurity products.

The software specialist, which was one of TheStreet's top tech picks for 2009, has gone from strength to strength this year.

Analysts surveyed by Thomson Reuters expect McAfee to report revenue of $486.6 million and earnings of 61 cents a share, up from $410 million and 31 cents a share in the same period last year.

McAfee itself has predicted third-quarter revenue between $475 million and $495 million. Excluding charges, the Silicon Valley firm expects to clinch earnings between 58 cents a share and 62 cents a share.

Jefferies analyst Katherine Egbert expects McAfee's consumer business to grow 8.5% compared to the same period last year, reaching $177 million, and predicts 12.5% growth during the fourth quarter. Like rival Symantec(SYMC Quote), McAfee will reap the benefits of a healthier PC market, according to Egbert.

"Lately, however, upside to consumer end point security sales is more likely to come from upsales of product suites, rather than new unit growth," she added, in a note released this week.

McAfee was recently upgraded by FBR Capital Markets on the strength of healthy cybersecurity spending and its strong product portfolio.

The software maker's results come hot on the heels of rival Symantec's strong third-quarter numbers, underlining the growing importance of cybersecurity.

Although Symantec has traditionally dominated the security software space, McAfee has been enjoying impressive growth, prompting speculation that it could eventually surpass its rival.