Symantec Profit Tops Estimate, Cuts FY Guidance; To Buyback $1 Bln Stock

(RTTNews) - Security software maker Symantec Corp (SYMC) on Thursday reported third-quarter net earnings of $222 million or $0.32 per share compared with $283 million or $0.40 per share last year.

Excluding items, adjusted earnings for the quarter were $0.53 per share compared with $0.52 per share a year ago.

Revenues for the quarter were lower by 4% at $1.64 billion compared with $1.71 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.49 per share on revenues of $1.67 billion for the quarter. Analysts' estimates typically exclude special items.

The company's gross margin for the quarter fell to 83% from 83.4% a year ago, and operating margin slid to 20% from 23.8%.

Symantec has declared a quarterly cash dividend of $0.15 per share.

Looking ahead to the fourth quarter, Symantec projects adjusted earnings of $0.42 to $0.45 per share on revenues of $1.53 billion to $1.59 billion. Analysts expect earnings of $0.49 per share on revenues of $1.63 billion.

For the full year 2015, the company now expects adjusted earnings of $1.87 to $1.90 per share on revenues of $6.52 billion to $6.58 billion. Earlier it expected earnings of $1.88 to $1.93 per share on revenues of $6.60 billion to $6.68 billion.

Analysts expect earnings of $1.90 per share on revenues of $6.66 billion for 2015.

Also Symantec announced a $1 billion share repurchase program, effective immediately. As of January 2, Symantec had about $283 million remaining under its earlier buyback program.

In October, Symantec announced a plan to separate itself into two, independent publicly traded companies: one business focused on security and the other on information management. The spin-off is to close by the end of December 2015.