Symantec shares fall after co. cuts outlook
(Associated Press Via Acquire Media NewsEdge) MOUNTAIN VIEW, Calif. (AP) — Shares of security software maker Symantec Corp. fell steeply Wednesday after it lowered its full-year outlook and said revenue fell in the second quarter, missing estimates.
Revenue in the three months that ended Sept. 27 fell 4 percent to $1.64 billion, below the $1.69 billion expected by analysts polled by FactSet.
The company blamed some of the shortfall on a reorganization it is going through to develop new integrated offerings and split its sales group into renewals and new business teams. The company believes the realignment will build a foundation for long-term growth.
Net income rose 28 percent to $241 million, or 34 cents per share, from $189 million, or 27 cents per share, a year ago. Excluding stock-based compensation costs, adjusted earnings came to 50 cents per share, above the 44 cents expected by analysts.
Given the quarter's revenue miss and the ongoing reorganization, Symantec said it now expects annual revenue to fall 3 to 4 percent, not including foreign currency movements. That is a downgrade from the end of July, when Symantec forecast annual revenue to be flat or grow 2 percent.
Shares of Symantec fell 12.6 percent in after-hours trading to $21.53 after dropping 2.3 percent to close at $24.62 in the regular session.
The company's third-quarter outlook was also worse than expected. It predicted adjusted earnings of 41 cents to 43 cents, below the 51 cents analysts had expected. It said third-quarter revenue would be between $1.63 billion and $1.67 billion, lower than the $1.79 billion analysts had been looking for.
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