Symantec’s (SYMC) market cap stands at $12.39 billion. Oracle (ORCL), IBM (IBM), and Microsoft (MSFT) have market caps of $186.77 billion, $119.9 billion, and $974.17 billion, respectively, as of May 10.
Symantec’s weak performance in the fourth quarter
Symantec posted mixed fiscal 2019 fourth-quarter results on May 9. Its earnings were in line with analysts’ estimate, but its revenue was lower than analysts’ estimate. The company’s enterprise revenue came in slightly below the low end of the company’s guidance range in the quarter, whereas its consumer revenue reached the high end of its guided range. Its operating margin of 29% came in just below its guidance of ~30% in the fourth quarter of 2019 due to lower-than-expected revenue in the Enterprise Security segment.
The company has given weak profit signals for the upcoming quarter due to higher expenses in the Enterprise Security segment. In the first quarter of 2020, the company expects its operating margin to be in the range of 25%–27%, down from 29% in the fourth quarter due to increased costs in the Enterprise Security segment as it continues to invest in infrastructure to support its cloud business.
Meanwhile, the company has plans to use its investments to grow its revenue in the Enterprise Security segment and to hire additional direct salespeople to improve productivity.