Revenue grew 27%
Symantec (SYMC) reported fiscal 2Q18 (September quarter) revenue that rose in the double-digit percentage and topped the consensus estimate. Revenue of ~$1.2 billion rose 27% YoY (year-over-year) and surpassed the consensus estimate by ~$10 million. On an adjusted basis, Symantec generated revenue of ~$1.3 billion, a 26% rise YoY.
Symantec’s rival security vendors Proofpoint (PFPT), FireEye (FEYE), and SecureWorks (SCWX) reported revenue growth of 35%, 2%, and 12% YoY, respectively, in their quarters that correspond to Symantec’s fiscal 2Q18. Cisco Systems (CSCO), another security vendor, posted a 4.0% YoY fall in its fiscal 4Q17 (July quarter).
Consumer safety segment supported growth
Symantec’s Consumer Digital Safety segment was a notable growth driver in 2Q18. Adjusted sales in this segment rose 42% YoY to $575 million to contribute 45% of total revenue. In 2Q18, Symantec’s consumer safety business benefited from the strong adoption of its security products following the disclosure of the massive data breach at Equifax (EFX). Demand for Symantec’s LifeLock services soared in the wake of the Equifax breach.
High-profile hacks leading organizations to rethink their online safety
In the Enterprise Security segment, Symantec reported adjusted revenue of $701 million, a 15% rise YoY. Petya and WannaCry ransomware attacks and the Equifax breach continued to draw more enterprise customers to Symantec’s security products in 2Q18, boosting sales in this segment.
The rise of high-profile data breaches is leading a growing number of enterprises to rethink their online security, which could expand the market for security vendors such as Symantec.
Symantec posted 2Q18 adjusted EPS (earnings per share) of $0.40, a 33% rise YoY.