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Analyzing Symantec, a Low Dividend Grower

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Why did SYMC’s net revenues fall in 2015 and 2016?

Symantec Corporation’s (SYMC) net revenues fell 5.0% and 9.0% in 2015 and 2016, respectively. Revenues from its Consumer Security (also known as Norton), Threat Protection, and Others segments drove this fall. Revenues from the US and foreign countries also fell during this timeframe.

How did Symantec’s EPS recover from its 2015 fall in 2016?

Symantec’s costs and expenses fell 6.0% and 31.0% in 2015 and 2016, respectively. As a result, its operating income rose 7.0% and 197.0% in 2015 and 2016, respectively. Other expenses rose 43.0% and 23.0% in 2015 and 2016, respectively. Its interest expenses decreased during the period.

These factors translated into a 2.0% fall in its 2015 EPS (earnings per share) and 194.0% growth in 2016. Its share buybacks further boosted its EPS.

How did Symantec’s net revenues grow in fiscal 2017 and fiscal 1H18?

Symantec’s net revenues recorded growth of 12.0% and 30.0% in fiscal 2017 and fiscal 1H18, respectively. Its Blue Coat Security segment drove the company’s growth in fiscal 2017, offset by the rest of the segments.

Its US and international markets recorded revenue growth during this period. The company’s Consumer Digital Safety and Enterprise Security segments drove its fiscal 1H18 growth.

The WisdomTree Emerging Markets Equity Income Fund (DEM) is a dividend ETF with 14.0% exposure to technology. It has a PE ratio of 10.7x and a dividend yield of 3.8%. The WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) is a dividend ETF with 17.0% exposure to technology. It has a PE ratio of 13.0x and a dividend yield of 3.0%.

In the next part of this series, we’ll continue discussing the company’s performance in fiscal 2017 and fiscal 2018, its dividend, and a comparison with the broad indexes (SPX-INDEX)(SPY)(DJIA-INDEX)(DIA)(COMP-INDEX)(ONEQ).

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