What happened
Shares of Symantec (GEN 0.05%) slumped on Friday following a mixed fiscal fourth-quarter report. Revenue came in a bit below analyst estimates, the outlook for fiscal 2020 fell short of expectations, and the company announced the abrupt resignation of its CEO. The stock was down about 13.3% at 2:20 p.m. EDT.
So what
Symantec reported fourth-quarter non-GAAP revenue of $1.195 billion, down 2.2% year over year and $10 million shy of the average analyst estimate. The company blamed lower-than-expected bookings in its enterprise security segment for the shortfall.
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Non-GAAP earnings per share came in at $0.39, down from $0.44 in the prior-year period and in line with analyst expectations. The company earned $0.05 per share on a GAAP basis, up from a loss of $0.10 per share in the prior-year period.
Along with the fourth-quarter results, Symantec announced that Greg Clark had stepped down as president and CEO, as well as from the board of directors, effective immediately. Symantec director Richard S. Hill will take over as interim president and CEO, and the company will begin a search process to find a permanent replacement.
"As we enter into a new financial year, Greg and the Board agreed that now is the right time to transition leadership, and we are confident in Rick's ability to drive the Company forward while we work to identify a permanent CEO," said Daniel H. Schulman, chairman of Symantec's board of directors.
Now what
Symantec expects to produce non-GAAP revenue between $4.76 billion and $4.90 billion in fiscal 2020, along with non-GAAP EPS between $1.65 and $1.80. The earnings outlook met analyst expectations, but the revenue outlook fell short of the $4.97 billion analysts were forecasting.
With a mixed fourth-quarter report and full-year outlook, as well as a sudden change in the C-suite, the market is punishing the stock.
