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Symantec Surges Despite Profit Dip

Symantec shares jumped after the software maker beat Wall Street's second-quarter estimates.

CUPERTINO, Calif. (

TheStreet

-- Shares of

Symantec

(SYMC) - Get Symantec Corporation Report

surged in extended trading after the security software specialist beat Wall Street's

expectations

for its fiscal second-quarter results, despite a year-over-year profit dip.

The company reported revenue of $1.48 billion for the three months ended Sept. 30, up 2% from the year-ago equivalent period adjusted for currency. Analysts surveyed by

Thomson Reuters

were looking for sales of $1.46 billion in the quarter.

Excluding items, Symantec earned 34 cents a share, down slightly from 36 cents in the prior year's quarter, but well above Wall Street's 28 cent forecast.

Investors responded positively to the numbers, driving Symantec's shares up 5.38% to $16.65 in after-hours trading.

Despite ongoing

concerns about an IT spending slowdown

, Symantec saw strong demand for its products in both the public and private sectors.

"The enterprise

business closed the quarter on a very strong note," James Beer, the Symantec CFO, told

TheStreet

. "We had good results around our backup and archiving

and our hosted services."

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Specifically, Symantec saw double-digit growth in its Data Loss Prevention (DLP), hosted services, and archiving products while the firm's archiving business grew in the mid single-digits.

This helped offset continued weakness in Symantec's storage management offerings. Beer also noted strong sales in the government sector. "

This was across our portfolio in both the civilian and the military agencies," he said.

Symantec, which was coming off a disappointing first quarter, also offered bullish guidance, projecting third-quarter sales between $1.57 billion and $1.59 billion. The current average estimate of analysts polled by

Thomson Reuters

is for revenue of $1.56 billion in the December period.

Excluding items, Symantec expects earnings of 32 to 33 cents a share, compared to Wall Street's forecast of 32 cents a share.

Beer also noted that Symantec is yet to see any impact from

Intel's

(INTC) - Get Intel Corporation (INTC) Report

$7.7 billion acquisition of rival software maker

McAfee

(MFE)

, which has

prompted talk of possible share gains.

"I wouldn't say that we have seen anything material yet," said the Symantec CFO. "I think that there are more opportunities for us coming there later."

--Written by James Rogers in New York.

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