The 10-second takeaway
For the quarter ended March 29 (Q4), Symantec beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted significantly.
Gross margins dropped, operating margins increased, net margins dropped.
Symantec logged revenue of $1.75 billion. The 26 analysts polled by S&P Capital IQ foresaw revenue of $1.73 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 29 earnings estimates compiled by S&P Capital IQ averaged $0.38 per share. Non-GAAP EPS of $0.44 for Q4 were 16% higher than the prior-year quarter's $0.38 per share. GAAP EPS of $0.26 for Q4 were 66% lower than the prior-year quarter's $0.76 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%, 110 basis points worse than the prior-year quarter. Operating margin was 16.6%, 300 basis points better than the prior-year quarter. Net margin was 10.8%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.64 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $6.99 billion. The average EPS estimate is $1.91.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 537 members out of 631 rating the stock outperform, and 94 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 142 give Symantec a green thumbs-up, and 19 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 $24.11.
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