Symantec Corp

Salesforce continued its spree in December 2016 with its acquisition of Twin Prime, a startup focused on machine learning.

On November 6, 2017, Symantec (SYMC) announced that it had acquired SurfEasy. In this series, we’ll look at that deal and other factors driving Symantec’s performance.

Cybersecurity company Palo Alto Networks (PANW) is expanding its product portfolio, adding new and updated products.

SMAC has led to increased security concerns and more global spending on cyber security, which is expected to reach $71.1 billion in 2014.

Symantec’s scale in the cybersecurity space So far in this series, we’ve looked at Symantec’s (SYMC) performance in fiscal 2Q18. We’ve discussed its segment-wise performance and factors that could boost its prospects in the rapidly growing cybersecurity space. In this part, we’ll compare Symantec’s value proposition with peers’. On November 27, 2017, Cisco Systems (CSCO), with a market […]

A comparative lack of security for Android shows that BlackBerry could do more harm than good to its image as a secure player by adopting Android as its operating system.

Symantec (SYMC) reported fiscal 3Q18 revenues of ~$1.2 billion, missing the Wall Street estimate by $40.0 million.

FireEye’s (FEYE) Helix security technology combines the company’s network, email, and endpoint security platforms with its advanced threat intelligence, threat analytics, and orchestration features.

With the Finjan Holdings (FNJN) litigation now behind it and subscription-based revenues continuing to grow, FireEye’s (FEYE) prospects in the security market may have just brightened.

VASCO Data Security is thus trading at a discount of 44.17% with respect to its median target and looks to be an attractive buy at current levels.

Vasco Data Security (VDSI) has generated returns of -25.5% in the trailing 12 months and 3.0% in the trailing-one-month period.

We know the nation is politically divided, and now the market is showing us its split personality as well.

FireEye (FEYE) stock has gained 16% in the last six months.

What’s Snap’s economic value? Snap (SNAP) boasts an enterprise value (or EV) of $14.3 billion. Peers FireEye (FEYE), IBM (IBM), Symantec (SYMC), and Oracle (ORCL) have EVs of $2.5 billion, $176.8 billion, $22.1 billion, and $190.6 billion, respectively. Snap’s trailing-12-month EV-to-sales ratio is 20.3x, and its EV-to-projected-sales ratio for the next year is 11.0x. Snap’s price […]

In fiscal 4Q16, FireEye (FEYE) expects its revenues to range from $187 million–$193 million and its billings to range from $230 million–$250 million.

The PureFunds ISE Cyber Security ETF (HACK) closed at $27.35 with a return of 0.18% on September 21, 2015.

Soros Fund Management’s top five buys in the second quarter were Invesco QQQ Trust (QQQ), Alphabet, eBay, Symantec, and Red Hat.

On December 20, Symantec announced that its Cloud Workload Protection (or CWP) product won the “product of the year” award in the cloud security category.

To boost its position in the cybersecurity space, Symantec has strategically chose to acquire Blue Coat.

Cash-to-debt ratio measures the financial strength of a company. EMC’s cash-to-debt ratio in 2Q15 is 1x, which is lower than the industry median of 1.4x.

ValueAct Capital initiated a new position in Symantec Corp. (SYMC) that accounts for 1.14% of the fund’s first quarter portfolio.

According to the New York Times, Symantec’s acquisition of Blue Coat was expected since it’s in line with Silver Lake’s working methods.

In fiscal 3Q15, HP’s layoffs or job cuts led to a fall of 13% on a year-over-year basis in GAAP SG&A expenses.

FireEye’s email security offerings—EX and ETP—provide protection against cyberattacks by reporting and examining suspicious email attachments and embedded URLs.

The 13F filing showed that George Soros bought almost 500,000 Slack (WORK) shares at an average price of $37.5 per share during the second quarter.

Continued sluggishness in computer market  In the previous part, we discussed Symantec’s (SYMC) latest acquisition of LifeLock. PC (personal computer) shipments fell for the eighth consecutive quarter in 3Q16. Gartner said that this was “the longest duration of decline in the history of the PC industry.” Let’s discuss how this acquisition is going to enhance its […]

Symantec (SYMC) has announced that the company is searching for a new CEO after its current CEO Michael Brown stepped down. Brown will continue in his position until a new CEO comes on board.

In fiscal 2Q18, Splunk posted revenue growth of nearly 32% year-over-year to $280 million.

Shareholder activism plays a dominant role in the breakup of companies to unlock shareholder potential.

Believed to be the world’s largest cyberattack, WannaCry ransomware infected more than 230,000 computers in almost 150 countries.

In fiscal 2016, Symantec’s Enterprise Security and Consumer Security segments posted revenues of ~$1.9 billion and ~$1.7 billion, respectively. They fell by 7% and 13% on a year-over-year basis.

Technology players’ initiatives Earlier in this series, we learned that cloud and cognitive computing will continue to dominate the IT (information technology) space, which explains technology players’ ongoing investment in them. Amazon (AMZN) recently announced three new AI (artificial intelligence) services—Amazon Lex, Amazon Polly, and Amazon Rekognition—for its cloud users. Amazon’s recent disclosure of its […]

The softness in the PC market is rumored to continue in 2015. This will dampen any prospects of a revival in Symantec’s Consumer Security Software business.

In accordance with its minimum tender condition, the majority of NetSuite stakeholders must vote in favor of the deal to make it happen.

Oracle is scheduled to report its fiscal 1Q17 results on September 16. Analysts expect revenues and non-GAAP EPS to be $8.7 billion and $0.58, respectively.

Symantec reportedly blocked more than 1 billion attempted WannaCry ransomware attacks.

Former CEO Steve Bennett’s turnaround plan Symantec 4.0 focused on a transformation within Symantec to an integrated solutions company. Product offerings were aligned across three segments namely user productivity and protection, information management, and information security. However, the recent management change surprised analysts and raised concerns about the outcome of the turnaround strategy. Although Bennett […]

Cybersecurity firm FireEye saw the value of its shares rise 14.5% last week after investment bank Goldman Sachs upgraded the stock to a “buy.”

In September 2017, Juniper Networks (JNPR) announced that it would acquire software security company Cyphort for an undisclosed sum.

Credit bureau company Equifax offers many credit-monitoring and identity-theft protection offerings, and its solutions include ID Patrol and ID Patrol Premier.

FireEye stock rose ~8% on March 20, 2017, to close at $11.61, after Bank of America analyst Tal Liani upgraded the stock from “neutral” to “buy.”

To boost its position and to tap the increasingly competitive security market, Symantec strategically chose to acquire Blue Coat for ~$4.7 billion.

The breakup of CSC and CSRA into two separate companies, effective November 30, was likely the reason for the ~55% fall in CSC’s share price on November 30.

The Apollo Global-Rackspace (RAX) deal is the latest deal indicating the growing interest of PE firms in the technology space.

In its fiscal 1Q15 earnings release, EMC lowered its expectations. Now, it expects its revenue and EPS to be $25.7 billion and $1.91, respectively.

The ETFMG Prime Cyber Security ETF (HACK) is an ETF (exchange-traded fund) that tracks the price and yield performance of the Prime Cyber Defense Index.

ValueAct Capital initiated a new position in Expeditors International of Washington Inc. (EXPD) that accounts for 0.65% of the fund’s first quarter portfolio.

Cloud services company Oracle (ORCL) posted adjusted earnings of $0.87 per share in the third quarter of fiscal 2019.

Symantec’s (SYMC) Enterprise Security segment reported a revenue drop of 6% quarter-over-quarter and 2% year-over-year.

In fiscal 2Q18, Cisco’s (CSCO) Security segment posted revenues of $558.0 million, a 6.0% increase compared to $526.0 million in fiscal 2Q17.

Sophisticated cyberattacks and ransomware problems have become a real part of our day-to-day lives—and in the businesses of FireEye and Symantec.

Amazon, through its cloud computing division, AWS, recently announced the launch of a new collaboration and education program, Amazon ML Solutions Lab.

Symantec announced that it intends to save ~$400 million per year by the end of fiscal 2018. Symantec will likely announce layoffs to save costs.

On December 11, Symantec announced that the primary cloud security components of its Integrated Cyber Defense platform are available through Oracle Cloud.

Symantec reported revenues of $909 million and non-GAAP EPS of $0.26 in fiscal 3Q16, which beat analysts’ expectations.

In fiscal 1Q16, Symantec’s Information Management—Veritas—posted revenue of $587 million. This was a fall of 10% on YoY (year-over-year) basis.

FireEye has frequently been considered as a potential takeover target, and its transition toward a subscription business model makes it an attractive option.

Symantec’s (SYMC) debt levels in the last two years have increased at a rapid pace, driven by the acquisition of Blue Coat Systems for ~$4.7 billion and LifeLock for $2.3 billion.

Symantec expects its fiscal 2019 revenues to reach $2.27 billion–$2.35 billion compared with its previous guidance of $2.29 billion–$2.39 billion.

Fortinet (FTNT) fell 13.3% on November 2 to close at $72.56.

Intel has agreed to sell a 51% stake in its security business to private investment company TPG in a $4.2 billion cash-stock deal.

Activist hedge fund Jana Partners has suggested that Qualcomm (QCOM) change its corporate structure and take other steps to boost shareholder value.

Bridgewater Associates increased its position in Juniper Networks from 0.07% in the 1Q portfolio to 0.21% in the fund’s 2Q portfolio.

Cybersecurity (HACK) stock FireEye (FEYE) has taken investors on a volatile ride over the last few years.

Looking at Oracle’s recent bond deal and its cash reserves, it won’t come as a surprise if Oracle announces more acquisitions after NetSuite.

Analysts call Symantec (SYMC) a value stock. The average EV-to-sales for the System Software subsector is 3.93x. Symantec is trading at an EV multiple of 2.34x.

Symantec’s comprehensive valuation Symantec (SYMC) has an EV (enterprise value) of ~$22.4 billion. In comparison, peers VMware (VMW), Intuit (INTU), Microsoft (MSFT), and Citrix Systems (CTXS) have EVs of ~$29 billion, ~$32.9 billion, ~$512.1 billion, and ~$12.2 billion, respectively. Symantec’s EV-to-adjusted EBITDA (enterprise value to adjusted earnings before interest, tax, depreciation, and amortization) multiple for […]

In fiscal Q4 2018, Symantec’s total billings increased 17.1% YoY to $1.6 billion.

Activision plans to use $3.6 billion in offshore cash to fund the King Digital acquisition. The company plans to fund the remaining $2.3 billion through debt financing.

The average target price for Symantec provided by 29 analysts came in at $21.10 on August 27.

Shares of cybersecurity company Symantec (SYMC) rose 4.3% on September 18. The stock is currently trading at $20.65.

But FireEye recently hit a profitability milestone and recorded its first-ever quarterly adjusted profit in 4Q17.

Symantec’s Consumer Security offerings are primarily focused on PC security solutions. PC shipments are considered to be the driving factor behind consumer security software sales.

On October 26, 2016, Symantec said that it had integrated “Blue Coat Threat Intelligence into its Global Intelligence Network.”

Symantec exited unprofitable deals with OEMs, which led to the expansion of operating profit margins to 53% in the Consumer Security segment.

Semiconductor giant Broadcom is reportedly arranging funds for the acquisition of cybersecurity company Symantec, though the terms are undisclosed.

Bridgewater Associates decreased its position in Cisco from 0.20% in the 1Q portfolio to 0.09% in the fund’s 2Q portfolio.

On November 19, Morgan Stanley upgraded Broadcom (AVGO) stock, increasing its price target and recommendations. AVGO rose 2.13% and closed at $317.70.

Chip maker Broadcom (AVGO) stock jumped over 2% on November 19 after Morgan Stanley raised its price target and recommendations.

Oracle acquires Dyn to expand its cloud portfolio Earlier in this series, we discussed various aspects of LifeLock’s acquisition by Symantec (SYMC). Participating in the ongoing trend of M&A (mergers and acquisitions), Oracle (ORCL) announced the acquisition of Dyn on November 21, 2016. Oracle did not disclose the financial details of the acquisition. Dyn provides […]

Ping Identity shares have gained 20% after it announced its quarterly results on Wednesday. The company reported sales of $61.8 million.

In 2Q14, SAP reported that its revenues and operating profits grew by 2% and 4% compared to 2Q13. In the half year ending 2014 and in 2Q14, SAP reported revenues that grew over 6% and 5% to reach 7.85 billion Euros and 4.15 billion Euros, respectively. It missed the analysts’ estimates by 70 million Euros.

On October 25, George Soros weighed in on the 2020 election. He told the New York Times that Elizabeth Warren is the “most qualified to be president.”

IBM (IBM) stock fell around 1.13% on Monday and closed the trading session at $132.58. The shares fell after one analyst downgraded the stock.

IBM (IBM) stock fell more than 5% in after-hours trading. The company reported mixed third-quarter results on Wednesday and beat the earnings estimates.

Microsoft (MSFT) stock fell 1.06% on October 8 and closed at $135.67. At this closing price, its market cap was about $1.04 trillion.

Broadcom stock closed the trading day at $274.85 and fell 0.44% on October 1. The stock was trading 14.9% below its 52-week high of $323.20.

Yesterday, Broadcom (AVGO) stock fell 2.70% in after-hours trading after the chipmaker announced a convertible stock offering.

Microsoft (MSFT) stock rose 1.19% in extended trading yesterday after the tech giant announced a new share buyback program and dividend increase.

Broadcom’s CEO is known for his mergers and acquisitions. He targets companies that are market leaders with high cash flows and distressed growth.

Broadcom (AVGO) stock fell as much as 1.9% in after-hours trading yesterday after the company reported mixed fiscal 2019 third-quarter earnings results.

Broadcom stock hasn’t been a great performer compared to its semiconductor peers this year. So far, the stock has fallen more than 4% today.

As the trade war eases, Broadcom stock has soared 5.4% through September 10. Broadcom plans to release its Q3 earnings after the market closes.

Oracle (ORCL) unexpectedly released its earnings results for the first quarter of fiscal 2020 on Wednesday after the market bell.

Given its positive estimate revision, Oracle (ORCL) is likely to report upbeat fiscal 2020 first-quarter earnings on September 12.

After Friday’s buyout offer for Symantec’s Consumer Cyber Safety segment, its stock soared 4.5% to $24.52. This pushed its market cap to $15.2 billion.

Symantec (SYMC) stock spiked as much as 7% on Friday and closed 4.5% higher to $24.52 on a buyout offer from Permira and Advent International.

Investors seem to have forgotten about Oracle, despite its strong gains this year. The enterprise software giant’s stock has risen 19.4% year-to-date.

Currently, the global market is a mess. Investors want more conservative dividend stocks in defensive sectors like consumer staples and utilities.

On August 8, leading semiconductor company Broadcom (AVGO) agreed to acquire Symantec’s Enterprise Security Business for $10.7 billion.