Symantec Corporation (NASDAQ:SYMC), a well-known security software provider, posted a slumped growth in the fiscal fourth quarter with profit and revenue both missing Wall Street expectations. Further the company’s ongoing quarter outlook also lagged analysts’ estimates, as the company is looking for means to make more aggressive technology against hackers and splitting its data-storage division in the current year. The shares of the company fell following the announcement.
Adjusted profit was 43 cents a share in the fourth quarter, slightly below the analysts’ forecast of 44 cents, where revenue also down performed average analysts’ forecast of $1.56 billion and slipped 6.6 percent to $1.52 billion in the fiscal fourth quarter.
According to CEO Michael Brown, volatility in currency rates hurt revenue. Similarly, termination of Norton antivirus package deals with PC makers and new subscription procedure for antivirus also impacted revenue while improving profit margins, Brown added.
“This is a bit of setback,” said Daniel Ives, an analyst at FBR Capital Markets & Co. who has the equivalent of a hold rating on Symantec. “Investors were not expecting spectacular numbers to begin with.’
The firm has given full quarter guidance. The firm expects adjusted profit of 41 cents to 44 cents a share along with revenue of $1.5 billion to $1.54 billion in the first quarter of fiscal 2016, a statement given by company on Thursday. Analysts’ expected better performance by the company’s current guidance and estimated a profit of 45 cents and revenue of $1.62 billion in the tenure, Bloomberg provided the data.
Brown says the splitting would give each business more “flexibility and focus” which provide stability to growth.
“Guidance could have been better,” said Pat Walravens, an analyst at JMP Securities, who has the equivalent of a buy rating on the stock. “The consumer business is dropping off more quickly than expected.”
The Norton antivirus segment of the firm was seen a steep slump of 19 percent to $408 million in revenue following low demands in PCs as users are more friendly towards smartphones and tablets to get online.
On the other hand revenue plummeted 3.9 percent to $491 million in security software business. But data-storage business proved good for company as revenue in this segment grew 1.5 percent to $619 million.
Overall, the firm gained income of $299 million in the fourth quarter, down from $333 million gained in the same period of the prior-year.
