Symantec Profit Surges 50%

(RTTNews) - Security software maker Symantec Corp. (SYMC) said Wednesday after the markets closed that its first quarter profit surged 50% from last year, as revenue increased and expenses fell.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. At the same time, the company forecast second quarter earnings below analysts' current consensus estimate, but maintained its full year outlook.

Michael Brown, Symantec interim president and chief executive officer, said, "Separation of the sales force into new business and renewals teams has led to improved performance, especially in North America. In particular, our federal and renewals teams both delivered one of their best quarters ever."

Symantec shares are currently losing 0.13% in after hours trading after closing the day's regular trading session at $23.73, down 19 cents. The shares trade in a 52-week range of $17.95 to $27.10.

Symantec has a relatively new leadership team. Brown was elected as the company's interim President and Chief Executive Officer in March, replacing Steve Bennett who was terminated from the company. In May, the company announced the appointment of Thomas Seifert as chief financial officer.

For the first quarter ended July 4, 2014, the company reported net income of $236 million or $0.34 per share, compared to $157 million or $0.22 per share for the year-ago quarter.

Excluding items, adjusted net income for the first quarter was $313 million or $0.45 per share, compared to $311 million or $0.44 per share in the prior year quarter.

On average, 23 analysts polled by Thomson Reuters expected the company to earn $0.42 per share for the first quarter. Analysts' estimates typically exclude special items.

Operating margin for the quarter improved to 18.6% from 13.1% a year ago, while adjusted operating margin shrank to 24.6% from 25.2% last year.

The maker of Norton anti-virus software said net revenue for the first quarter rose 2% to $1.74 billion from $1.71 billion in the same quarter last year. Twenty analysts had a consensus revenue estimate of $1.67 billion for the first quarter.

Symantec declared a quarterly cash dividend of $0.15 per share to be paid on September 17 to all shareholders of record on August 27. The ex-dividend date will be August 25.

Looking forward to the second quarter, the company forecasts revenue of $1.60 to $1.64 billion, earnings of $0.29 to $0.33 per share and adjusted earnings of $0.40 to $0.44 per share. Analysts currently expect the company to earn $0.45 on revenue of $1.63 billion for the second quarter.

For the fiscal year 2015, the company continues to forecast revenue of $6.63 to $6.77 billion, earnings of $1.43 to $1.51 per share and adjusted earnings of $1.84 to $1.92 per share. Analysts currently expect the company to earn $1.88 per share on revenue of $6.69 billion for the fiscal year 2015.