Publish date:

Intel/McAfee Could Boost Symantec Results

Symantec, on deck for second-quarter results, has investors eyeing upside from Intel's McAfee deal.



-- Could

Intel's (INTC) - Get Report $7.7 billion acquisition of McAfee (MFE)

spell upside for


(SYMC) - Get Report


Symantec, which reports its second-quarter results after market close, could be poised for near-term gains thanks to its competitor's deal. Despite lingering concerns about Symantec's topline growth, analyst firm William Blair predicts that

Symantec could gain market share while Intel integrates McAfee


Post-M&A integration can serve as a major distraction for the companies involved, often presenting their rivals with an opportunity to claw market share. With chipmaker Intel now set to swallow security software specialist McAfee, William Baird has initiated Symantec coverage with an outperform rating.

Symantec, however, is coming off a disappointing first quarter when it missed Wall Street's sales estimate, and investors will be looking for evidence of organic revenue growth. Analysts surveyed by Thomson Reuters expect Symantec to report second-quarter revenue of $1.46 billion and earnings of 28 cents a share, compared to $1.47 billion and earnings of 36 cents a share in the prior year's quarter.

The software maker should also provide additional insight into the state of IT spending when it posts its results. Software giant


(MSFT) - Get Report

, for example, was

recently downgraded by FBR Capital Markets on fears of a PC slowdown

TheStreet Recommends

, although tech giant


(IBM) - Get Report

beat Wall Street's estimates in its

third-quarter results

last week, and also lifted full-year guidance.

Recently touted as a

potential Microsoft acquisition target

, Symantec noted a cautious IT spending environment during the first quarter, which particularly impacted its storage management business.

The company may nonetheless get a boost from delayed first-quarter deals. During the summer, Symantec CEO Enrique Salem

told TheStreet

that some of the company's biggest deals came in after the end of the first quarter, and closed in July.

Symantec shares dipped 19 cents, or 1.16%, to $15.70, on Wednesday, outpacing the modest retreat in tech stocks that saw the Nasdaq dip 0.31%.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to


>To submit a news tip, send an email to: