Symantec Shares Slump On Guidance
CUPERTINO, Calif. (
--
Symantec
(SYMC) - Get Report
swung to a profit in its
third-quarter
results, boosted by its consumer business but saw shares slump on weak fourth-quarter guidance.
The software maker, which is the biggest player in security software, earned 37 cents a share on net income of $300 million, compared with a loss of $8.25 a share and $6.82 billion in the prior year's quarter. Symantec's income, however, was boosted by $78.5 million, or 10 cents a share, thanks to a ruling by the U.S. Tax Court regarding a tax assessment for Veritas Software for 2000 and 2001.
Excluding items, Symantec predicted fourth-quarter earnings between 36 cents a share 37 cents a share, compared with analysts' estimate of 37 cents.
Investors were unimpressed by Symantec's guidance; the company's stock fell 81 cents, or 4.35%, to $17.80 in extended trading.
Symantec reported third-quarter revenue of $1.548 billion, up slightly from $1.51 billion in the same period of last year, and above analysts' estimate, which was also $1.51 billion. Excluding items, Symantec earned 40 cents a share, down from 42 cents in the same period last year. Analysts surveyed by Thomson Reuters had predicted earnings of 37 cents a share.
James Beer, the Symantec CFO, told
TheStreet
that the company's consumer business enjoyed strong growth during the third quarter, with revenue increasing 7% year over year.
The CFO also added that his firm is seeing "good traction" in its enterprise security business, where it faces a
from rival
McAfee
(MFE)
.
Although a much smaller company,
has become something of a Wall Street
and was one of the
TheStreet's
top tech picks
for 2009 .
Symantec, however, has been ramping up the
on its hard-charging rival, recently clinching a deal with
Comcast
(CMCSA) - Get Report
in which the communications giant will offer its software to high-speed Internet customers. Previously, Comcast had offered McAfee's software.
The company's security and compliance business grew 3% year over year during the fourth quarter, although Symantec's storage and server management division saw its sales slip 4% compared to the prior year's quarter.
-- Reported by James Rogers in New York









