Symantec’s fourth-quarter earnings results
Antivirus software maker Symantec (SYMC) delivered EPS of $0.05 in the fourth quarter of fiscal 2019, but on an adjusted basis, its EPS were $0.39. Its adjusted EPS were in line with Wall Street’s expectation and were within its guidance range of $0.37–$0.41. Its adjusted earnings, however, fell ~11.4% YoY (year-over-year) due to lower revenue and heavy spending in the Enterprise Security segment.
Its revenue of $1.195 billion, however, lagged analysts’ expectation of $1.207 billion by 1.2% in the quarter. Its revenue was also down 3.2% YoY from the previous year’s quarter, but it was within its guided range of $1.19 billion–$1.22 billion. Its total billings fell 16% YoY in the fourth quarter. It lost small and medium business opportunities in the quarter, which led to this weakness.
The company is predicting soft profits in the first quarter of fiscal 2020, as it expects increased spending in the Enterprise Security segment related to higher investments in the cloud business. Symantec expects adjusted EPS of $0.30–$0.40 in the first quarter compared to analysts’ estimate of $0.34 and the previous year’s estimate of $0.34. The company expects revenue of $1.18 billion–$1.21 billion in the first quarter of fiscal 2020, lower than its fiscal 2019 first-quarter revenue of $1.165 billion. Analysts expect the company to see fiscal 2020 first-quarter revenue of $1.2 billion.