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Symantec's Second Quarter Earnings Report
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Symantec (Nasdaq:SYMC) announced its results for the most recent quarter on October 24, 2012. Symantec provides security, storage and systems management solutions to help businesses and consumers secure and manage their information.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Surprising Earnings Results
The Numbers: Symantec posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported 27 cents per share versus the 33 cents per share estimate and revenues of $1.7 billion versus the $1.65 billion estimate. EPS rose 12.5% while revenue climbed 1.1% from the same period last year. Symantec's revenue has grown during each of the past four quarters on a year-over-year basis. Symantec reported net income of $193 million during the second quarter. This is 6% higher than the year-ago quarter.
Management Quote: "We delivered better than expected results with record September revenue and deferred revenue, in addition to strong net income and EPS as we continue to make improvements to the performance of our businesses," said James Beer, executive vice president and chief financial officer, Symantec. "We saw strength in enterprise security and backup as well as growth in consumer security."
A Look Back: Gross margin shrank one percentage point to 83.3%. The contraction appeared to be driven by increased costs, which rose 7.2% from the year earlier quarter while revenue rose 1.1%.
Net income has increased 68.9% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed more than threefold from the year-earlier quarter.
Looking Ahead: For the next quarter, analysts are growing pessimistic about the company's expected results. The average estimate for the third quarter is 37 cents per share, dropping from 38 cents a month ago. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has been unchanged at $1.46 a share.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Surprising Earnings Results
The Numbers: Symantec posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported 27 cents per share versus the 33 cents per share estimate and revenues of $1.7 billion versus the $1.65 billion estimate. EPS rose 12.5% while revenue climbed 1.1% from the same period last year. Symantec's revenue has grown during each of the past four quarters on a year-over-year basis. Symantec reported net income of $193 million during the second quarter. This is 6% higher than the year-ago quarter.
Management Quote: "We delivered better than expected results with record September revenue and deferred revenue, in addition to strong net income and EPS as we continue to make improvements to the performance of our businesses," said James Beer, executive vice president and chief financial officer, Symantec. "We saw strength in enterprise security and backup as well as growth in consumer security."
A Look Back: Gross margin shrank one percentage point to 83.3%. The contraction appeared to be driven by increased costs, which rose 7.2% from the year earlier quarter while revenue rose 1.1%.
Net income has increased 68.9% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed more than threefold from the year-earlier quarter.
Looking Ahead: For the next quarter, analysts are growing pessimistic about the company's expected results. The average estimate for the third quarter is 37 cents per share, dropping from 38 cents a month ago. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has been unchanged at $1.46 a share.
by
Investopedia Staff
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