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
TheStreet Open House

Symantec (SYMC) Slides on Third Executive Departure

NEW YORK (TheStreet) -- Symantec (SYMC) shares continued to slide after the company's third executive departure in as many months. During Tuesday's session, shares dropped 0.69% and shed an additional 0.69% to $22.89 in premarket trading on Wednesday.

The global security company announced late Monday that its products and services chief, Francis deSouza, was leaving to pursue a presidency at Illumina (ILMN), a genetic technology firm. The products and services division will now report directly to CEO Steve Bennett.

In late September, Symantec also lost its Chief Financial Officer James Beer to biotech firm McKesson (MCK) and head of information management C.J. Desai to EMC (EMC).

The Mountain View, Calif.-based business experienced a turbulent October after lower-than-expected guidance and a year-on-year sales decline in the second quarter. On Oct. 24, shares plunged 12% after projected third-quarter earnings between 41 cents to 43 cents a share failed to impress. Analysts surveyed by Thomson Reuters had anticipated 51 cents a share.

Sales in Symantec's three core divisions -- consumer security software, enterprise security software and storage software -- saw low single-digit declines in the second quarter.

"We are confident in our strategy and have made significant progress in our company transformation. We've improved our existing point solution offerings, built dedicated teams to create and refine the new integrated offerings, and have attracted lighthouse customers as early adopters of our new offerings," reassured Bennett in a statement Tuesday.

Following the announcement of deSouza's departure, Macquarie downgraded Symantec to "neutral" and lowered its price target to $24 from $26. 

TheStreet Ratings team rates Symantec Corp as a Buy with a ratings score of B+. The team has this to say about its recommendation:

"We rate Symantec Corp (SYMC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 27.5% when compared to the same quarter one year prior, rising from $189 million to $241 million.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 25.37%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Regarding the stock's future course, although almost any stock can fall in a broad market decline, SYMC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has slightly increased to $191 million or 7.3% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.99%.
  • Symantec Corp has improved earnings per share by 25.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, Symantec Corp reported lower earnings of $1.05 a share vs. $1.57 a share in the prior year. This year, the market expects an improvement in earnings ($1.77 vs. $1.05).

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!
DOW 17,071.22 -41.93 -0.24%
S&P 500 1,977.80 -5.05 -0.25%
NASDAQ 4,505.8520 -6.3420 -0.14%

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