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Symantec’s Fiscal 2Q16 Results in Line with Analyst Expectations

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Symantec’s fiscal 2Q16 EPS exceeded analysts’ expectations

On November 5, 2015, Symantec (SYMC) announced its fiscal 2Q16 results. The company posted $1.5 billion in revenue and non-GAAP (generally accepted accounting principles) earnings per share (or EPS) of $0.44. Symantec’s revenues were in line with analysts’ expectations, and its EPS beat analysts’ expectations by $0.02 per share.

On a year-over-year (or YoY) basis, Symantec’s revenues of $1.5 billion declined by 7.4%. In constant currency terms, this decline was 1%, meaning that the US dollar’s (UUP) appreciation continued to play a strong role in the company’s fall in revenues.

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Prior to releasing its fiscal 2Q16 results, Symantec was in the news for the sale of its information management business Veritas to the Carlyle Group for $8 billion. Due to ongoing transitions—including the sale of Veritas scheduled to be completed by January 1, 2016—Symantec’s revenues contracted across the board. In fiscal 1Q16, Symantec had provided subdued guidance for fiscal 2Q16.

Symantec’s share price outpaced other cybersecurity players

As shown in the above share price chart, Symantec’s share price increased slightly due to the company’s results. This was in line with consensus estimates. However, the share prices of leading enterprise security technology firms Fortinet (FTNT), Barracuda (CUDA), and Proofpoint (PFPT) fell in the 4%–5% range. This decrease was due to FireEye’s (FEYE) lowered 4Q15 and 2015 revenue and billings guidance.

FireEye also failed to meet analysts’ revenue and billings expectations in its recent fiscal 3Q15 results. As a result, FireEye’s share price fell ~15% on November 4, 2015, the day the company announced its fiscal 3Q15 results.

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