Symantec’s stock price performance
Cybersecurity company Symantec (SYMC) stock plummeted ~12.5% on May 10, closing at $19.39 after the company announced its fiscal 2019 fourth-quarter earnings results and issued soft profit guidance for the first quarter of fiscal 2020 on May 9. On the same day, the antivirus software maker’s CEO stepped down, which pulled its shares down by as much as 16% in after-hours trading on May 9.
Symantec hasn’t been performing too well this year. The stock has gained only 2.92% YTD (year-to-date) as of May 10 compared to the S&P 500’s gain of 14.94%. In the software industry, the stock prices of Symantec’s peers IBM (IBM), Oracle (ORCL), and Microsoft (MSFT) have risen 21.9%, 22.1%, and 25.7%, respectively, YTD.
Fourth-quarter results in brief
The company reported earnings that were in line with its estimates in the fourth quarter, while its revenue lagged Wall Street’s estimate. Further, the company has forecast weak earnings guidance for the upcoming quarter due to the sluggish performance of its Enterprise Security segment, as bookings volumes were lower than expected in the fourth quarter. Meanwhile, its revenue is expected to be in line with analysts’ projections.
Oracle reported better-than-expected earnings and revenue in the third quarter of fiscal 2019 (which ended in February) driven by growth in its cloud-based services and license support business. Microsoft also topped earnings and revenue estimates in the third quarter of fiscal 2019 (which ended in March), while IBM delivered upbeat earnings in the first quarter of 2019 but saw its revenue lag analysts’ estimate.