Symantec Could Gain Market Share after Kapersky’s Exit



Capitalizing on competitor’s crisis

All is not well with one of Symantec’s (SYMC) rivals. As with the increasing cyberthreats, a crisis in a rival’s camp could be an opportunity for Symantec to increase its sales and expand its market share more rapidly.

The Trump administration removed Kaspersky Lab from the list of vendors that can supply US (SPY) government agencies with technology. Kaspersky Lab, the maker of Kaspersky Antivirus, is headquartered in Moscow, Russia.

The US ban on Kaspersky eliminates a rival for Symantec in its US market, which the company sees as an opportunity to grow its market share.


Article continues below advertisement

Taking advantage of the McAfee spin-off

In an early September interview, Symantec’s CEO, Greg Clark, noted that the company could take market share from Kaspersky Lab and McAfee. In 2016, Intel (INTC) sold a majority stake in its security business, McAfee, to private equity firm TPG.

As it restructured in response to the slowdown in its core computer chips market, Intel didn’t consider McAfee a strategic fit. As a result, it spun McAfee off. However, shifting McAfee to a new owner could disturb its customer base and in turn, give Symantec an opportunity to access its market.

Symantec upgrades fiscal 2018 outlook

While releasing its fiscal 1Q18 (quarter ended July) results, Symantec upgraded its revenue and earnings outlook for the current fiscal year. It raised its revenue guidance to $5.16 billion–$5.26 billion (with a midpoint of $5.21 billion).

This estimate is an improvement from the initial guidance in the range of $5.1 billion–$5.2 billion. From the chart above, we can see how Symantec’s annual revenues have trended over the last few years.

Symantec is facing off with rivals such as Cisco Systems (CSCO), FireEye (FEYE), and Imperva (IMPV) for control of the cybersecurity market.


More From Market Realist