Updated from March 24
as a component of the
index after the closing bell on Friday, March 28. The news helped Symantec, a maker of antivirus and Web security software, regain some of the ground lost Monday when the company was downgraded.
Symantec lost more than 8% Monday after being downgraded. In recent trading Tuesday, shares of the Cupertino, Calif., company were up $1.27, or 3.25%, to $40.36, amid heavy volume.
Monday, U.S. Bancorp Piper Jaffray analyst Gene Munster downgraded the software company's shares to underperform from market perform.
Munster said he still expects Symantec to meet overall March quarter guidance, but he said sales of enterprise security software were slower than expected following a December "budget flush" that pushed sales up in the previous quarter.
Munster didn't downgrade rival
, but he noted that both companies are being hurt by the slowdown.
"This slowdown in Symantec's enterprise security sales
does not reflect any execution difficulty on the part of the Company ... rather, we believe that the enterprise antivirus market slowed in the March quarter. As a result, our finding leads us to be incrementally less positive on Network Associates," he wrote. U.S. Bancorp Piper Jaffray does not have a current investment banking relationship with either company.
For the March quarter, Munster now expects Symantec to report revenue of $375 million as opposed to Wall Street's consensus of $385 million. He lowered his estimated earnings per share by 2 cents to 47 cents. Wall Street's consensus is for earnings of 46 cents a share.