NEW YORK (TheStreet) -- Symantec (SYMC) eased past Wall Street's estimates in its first-quarter results, released after market close on Tuesday, boosted by strength in its security and backup businesses.
The software maker reported revenue of $1.71 billion, a year-over-year increase of 3% in constant currency. Analysts surveyed by Thomson Reuters were looking for sales of $1.64 billion.
Excluding items, Symantec earned 44 cents a share, up 7% on the prior year's quarter, well above analysts' estimate of 36 cents a share.
Investors responded positively to the numbers, pushing Symantec's shares up 4.64% to $25.48 in extended trading.Revenue from Symantec's Information Management business, which includes the company's backup and recovery products, grew 4% year-over-year to $641 million on an actual and currency adjusted basis. "Customers are increasingly looking to our integrated backup appliance - it's easier for them to install and operate in their networks," said James Beer, the Symantec CFO, during a phone interview with The Street. The devices, he noted, offer both data backup and de-duplication capabilities. Revenue from Symantec's User Productivity & Protection business, which includes endpoint security and management, encryption, and mobile, dipped 1% year over year to $732 million. Adjusting for the effects of currency, revenue at the segment rose 1%. "We saw strength on our endpoint security business, both enterprise and Norton," said Beer. "We saw a particularly strong growth rate on the authentication business - that's Web site security verification." Symantec, which is in involved in a major restructuring effort, gave fiscal second-quarter guidance that was below analysts' expectations. It said it expects sales to be between $1.65 billion and $1.69 billion, below Wall Street's forecast of $1.71 billion. Excluding items, the Mountain View, Calif.-based firm expects earnings between 42 cents and 44 cents a share. Analysts surveyed by Thomson Reuters were looking for earnings of 45 cents a share. "In Q2 we're rolling out our revised go-to-market model," said Beer. "We have set up a renewals organization that will just be focused on bringing in the renewals [and] our field sales folks will just be focused on bringing in new business." Symantec nonetheless affirmed its fiscal 2014 guidance for year-over-year revenue growth between 0 and 2% on a constant currency basis. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV