This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Symantec CEO: We Have Too Many Managers

Stocks in this article: SYMC GE INTU

Bennett declined to provide a figure during his interview with TheStreet but said the company will have fewer employees a year from now. "It will be material," he said.

As part of its restructuring, Symantec has also created a new office of the CEO, with a small team of executives including its CFO and COO, making decisions with Bennett on a daily basis. Sales-geography leaders will report direct to the CEO, as well as the chief officers in areas such as IT, marketing and communications.

The company split its CEO and chairman positions this week, with the board electing director Dan Schulman to the position of non-executive chairman. Previously, Bennett held both roles.

Stifel Nicolaus analyst Todd Weller described the strategic overhaul as good for the company, citing a positive growth impact. Weller, however, expects limited upside for the company's shares in the near term, pointing to the risks involved in major organizational changes.

As a result, Weller downgraded the company to "hold" from "buy" this week.

The analyst noted that Symantec kept its focus on the same markets. "Likely to be viewed as somewhat surprising, Symantec is not making any significant changes (at least for the moment) with respect to its key market/product focus areas," he wrote in a note.

"We feel very comfortable about the markets that we're in and the assets we have ," Bennett told TheStreet. "I like the markets."

Symantec rolled out a new capital-allocation strategy this week, which, over time, will return about half of free cash flow to shareholders through dividends and share repurchases. As part of this effort, the software maker announced its first ever-cash dividend, targeting a yield of about 2.5%. The initial dividend payment will be made in the June quarter.

The company comfortably beat Wall Street's estimates in its third-quarter results on Wednesday, helped by strength in EMEA and the company's information management business.

Symantec shares rose 1.3% to $22 during Friday trading.

-- Written by James Rogers in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs