CUPERTINO, Calif. (
spell upside for
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
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
, for example, was
, although tech giant
beat Wall Street's estimates in its
last week, and also lifted full-year guidance.
Recently touted as a
, 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
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.
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