Symantec Soars on Strong Quarterly Numbers
NEW YORK (TheStreet) -- Symantec(SYMC) comfortably beat Wall Street's estimates with its third-quarter results released before market open on Wednesday, helped by strength in EMEA and the company's information management business.
The software specialist brought in revenue of $1.79 billion, an increase of 4% on the prior year's quarter, or 5% adjusted for the effects of currency. Analysts surveyed by Yahoo! Finance were looking for sales of $1.74 billion.
Excluding items, Symantec earned 45 cents a share, up from 42 cents a share in the prior year's quarter, and well above Wall Street's expectation of 38 cents a share.
"Strength in EMEA, information management and license revenue drove our FX adjusted organic revenue growth of 4%," said Symantec Chief Financial Officer James Beer, in a statement released before market open. "Our better-than-expected top line growth coupled with disciplined expense management drove non-GAAP operating margins of 25.6% even as we are investing in certain areas to better serve our customer needs."
Investors welcomed the numbers, pushing Symantec's shares up 4.03% to $21.70 in premarket trading.
Revenue from Symantec's consumer business accounted for 30% of the company's total revenue, and increased 1% year over year, or 2% adjusted for currency. Security and compliance offerings made up 29% of the firm's overall sales, and rose 3% from the prior year's quarter, or 4% adjusted for the effects of currency.
Symantec's storage and server management business was 37% of total revenue, and enjoyed an 8% year-over-year hike, or 9% after adjusting for currency. Services accounted for 4% of Symantec's revenue, increasing 10% from the same period last year, or 9% adjusted for currency.
Symantec CEO Steve Bennett, who took over from Enrique Salem last year, will host a Webcast at 4:30 p.m. EST Wednesday to discuss the company's results and its strategic direction. Symantec will also offer guidance during the Webcast.
Analysts surveyed by Yahoo! Finance are looking for fourth-quarter revenue of $1.73 billion and earnings of 40 cents a share.
--Written by James Rogers in New York.
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