Symantec beats Q1 estimates, misses Q2 outlook target

Symantec starts fiscal 2014 on a high note with better than expected earnings and revenue for Q1.
Written by Rachel King, Contributor

For the most part, Symantec didn't disappoint with its first fiscal quarter earnings report published after the bell on Tuesday afternoon.

The security giant reported a net income of $157 million, or 22 cents per share (statement). Non-GAAP earnings were 44 cents per share on a revenue of $1.71 billion.

Wall Street was looking for earnings of 36 cents per share on a revenue of $1.64 billion.

Highlighting upticks in the backup, information security and endpoint security segments, Symantec chief financial officer James Beer reflected on the quarter in prepared remarks:

During a period of planning and significant resource reallocation, we executed well and grew organic revenue by 3 percent. The magnitude of change we are undertaking is substantial and so as we move increasingly into the implementation phase of our transformation, we remain cautious on our outlook for the coming quarter.

Here's a closer look at Symantec's Q1, by the numbers:

  • User Productivity & Protection (endpoint security and management, encryption, and mobile): $732 million in revenue, accounting for 43 percent of total revenue -- down one percent year-over-year (or up one percent after adjusting for currency)
  • Information Security (mail & web security, authentication services, data center security, Managed Security Services, hosted security services, and data loss prevention): Grew seven percent year-over-year (or nine percent after adjusting for currency) to $336 million, or 20 percent of total revenue
  • Information Management (backup and recovery, information intelligence, archiving and e-discovery, and information availability): Represented 37 percent of total revenue with $641 million for the quarter, up four percent year-over-year (actual and adjusted currents basis)
  • The Americas (the United States, Latin America and Canada): Represented 55 percent of total revenue, up by three percent year-over-year (both actual and adjusted rate)
  • International revenue: Represented 51 percent of total revenue and increased two percent (four percent after adjusting for currency).

For the second fiscal quarter, Wall Street is looking for revenue of $1.71 billion with earnings of at least 45 cents per share.

Symantec missed the bar set by analysts slightly with a revenue outlook range of $1.65 billion to $1.69 billion on earnings of 42 to 44 cents per share.

For fiscal 2014, Symantec reconfirmed its guidance for revenue to grow by zero to two percent annually with non-GAAP shares expected to climb by five to seven percent year-over-year.

Editorial standards