The 10-second takeaway
For the quarter ended Dec. 30 (Q3), Symantec met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share expanded significantly.
Margins increased across the board.
Symantec logged revenue of $1.72 billion. The 25 analysts polled by S&P Capital IQ anticipated revenue of $1.71 billion. Sales were 6.9% higher than the prior-year quarter's $1.60 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.42. The 29 earnings estimates compiled by S&P Capital IQ averaged $0.41 per share on the same basis. GAAP EPS of $0.32 for Q3 were 88% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 85.5%, 50 basis points better than the prior-year quarter. Operating margin was 17.8%, 230 basis points better than the prior-year quarter. Net margin was 14.0%, 580 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.74 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $6.79 billion. The average EPS estimate is $1.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 526 members out of 619 rating the stock outperform, and 93 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give Symantec a green thumbs-up, and 21 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 $21.92.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.