Symantec Corp's results beat estimates for the fourth consecutive quarter driven by demand for its data loss prevention and information security products.
Security software makers are doing well despite weak IT spending as rising cyber attacks boost demand for their products. Spending on computer security is expected to rise to about $86 billion in 2016 from about $55 billion in 2011, market research firm Gartner said in a recent report.
“These are commendable results in a tough IT spending environment, especially on the consumer business, given a tough PC environment,” FBR Capital Markets analyst Daniel Ives said.
This is the third earnings beat under new Chief Executive Steve Bennett who has been trying to turn the company around.
“The new CEO has talked the talk and walked the walk in terms of numbers,” Ives said.
Symantec is doing better than expected
As part of Bennett's turnaround strategy, the company in January split the chief executive and chairman jobs. The CEO also said he planned to reorganize Symantec's sales force, expand its marketing efforts and change the way it sells goods over the web.
The company also paid out its first-ever quarterly cash dividend of 15 cents per common share.
Net income attributable to the company fell to $188 million, or 26 cents per share, in the fourth quarter, from $559 million, or 76 cents per share, a year earlier.
The company had recorded a one-time gain of $530 million in the year-ago quarter after it sold off its stake in a venture with China's Huawei.
Revenue rose 4 percent to $1.75 billion.
On an adjusted basis, the company earned 44 cents per share.
Analysts on average had expected a profit of 38 cents on revenue of $1.73 billion, according to Thomson Reuters I/B/E/S.
Symantec shares were marginally up at $25.20 in after-market trading. They closed at $25.10 on the Nasdaq on Tuesday.
Publish date: May 8, 2013 11:43 am| Modified date: December 19, 2013 11:23 am