The 10-second takeaway
For the quarter ended June 28 (Q1), Symantec beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share expanded. GAAP earnings per share dropped.
Margins contracted across the board.
Symantec reported revenue of $1.71 billion. The 25 analysts polled by S&P Capital IQ hoped for net sales of $1.64 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.44. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. Non-GAAP EPS of $0.44 for Q1 were 2.3% higher than the prior-year quarter's $0.43 per share. GAAP EPS of $0.22 for Q1 were 8.3% lower than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 83.3%, 80 basis points worse than the prior-year quarter. Operating margin was 18.0%, 20 basis points worse than the prior-year quarter. Net margin was 9.2%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.71 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $6.96 billion. The average EPS estimate is $1.89.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 534 members out of 628 rating the stock outperform, and 94 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 142 give Symantec a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Symantec is outperform, with an average price target of $26.13.
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