McAfee Beats on Profit, Sluggish on Sales

McAfee missed Wall Street's second-quarter revenue estimate, but saw earnings top analysts' expectations.
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SANTA CLARA, Calif. (

TheStreet

) -- Security specialist

McAfee

(MFE)

missed Wall Street's revenue estimate in its second-quarter results, but saw earnings top analysts' expectations.

The software maker, which competes with

Symantec

(SYMC) - Get Report

, posted revenue of $489 million, up 4% from the same period last year, but well below Wall Street's target. Analysts surveyed by Thomson Reuters had forecast sales of $507.42 million.

Even excluding items, McAfee still came in below consensus with sales of $495 million.

McAfee's CEO, Dave DeWalt

Despite the revenue miss, McAfee met Wall Street's profit forecast. Excluding items, McAfee earned 63 cents a share, an increase of 5% on the prior year's quarter, and above analysts' estimate of 60 cents a share.

Investors responded warmly to the earnings beat, and McAfee's stock rose 9 cents, or 0.3%, to $30.34 in extended trading, reversing Thursday's selloff of McAfee shares.

McAfee also gave third-quarter guidance in a statement released after market close, predicting revenue between $505 million and $520 million, at the low end of Wall Street's forecast. Analysts had forecast third-quarter sales of $522.79 million.

Excluding items, McAfee expects earnings between 62 cents a share and 66 cents a share, compared to analysts' estimate of 65 cents a share.

McAfee's results come hot on the heels of Symantec's

first-quarter sales miss

, which the security software specialist blamed on a cautious IT spending environment.

In a statement, McAfee CEO Dave DeWalt admitted that his company had experienced foreign currency headwinds during the quarter, but highlighted the firm's record consumer revenue.

McAfee's consumer revenue grew 8% year-over-year to a $191 million in the second quarter, or an increase of 9% at constant currency.

In a separate statement released after market close on Thursday, McAfee also announced plans to acquire mobile security software specialist

tenCube

. Financial terms of the deal were not disclosed.

-- Reported by James Rogers in New York

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