Symantec Posts Downbeat Q4 Earnings, Issues Weak Forecast

Shares of

dropped more than 2 percent in after-hours trading after the company reported weaker-than-expected earnings for the fiscal fourth quarter and issued a weak forecast. The Mountain View, California-based company reported quarterly net income of $176 million, or 0.25 per share, compared to $217 million, or $0.31 per share, in the year-ago period. Its adjusted earnings dropped to $0.43 per share from $0.48 per share. Its revenue slipped 7 percent year-over-year to $1.52 billion, while non-GAAP revenue fell 6 percent to $1.55 billion. However, analysts were expecting earnings of $0.44 per share on revenue of $1.56 billion. The average estimate among 16 Estimize users was for earnings of $0.46 per share and revenue of $1.57 billion. Its operating margin shrank to 10 percent, from 18.8 percent in the year-ago quarter. The company's board has declared a quarterly cash dividend of $0.15 per common share. Michael A. Brown, president and CEO, said, "Fiscal 2015 was a transformative year for Symantec, as we announced our unified security and information management strategies, delivered more than fifty products, and made the decision to separate Symantec and Veritas into two standalone companies." For the first quarter, Symantec expects adjusted earnings of $0.41 to $0.44 per share on revenue of $1.5 billion to $1.54 billion. Analysts project earnings of $0.45 per share on revenue of $1.62 billion. For the year, the company projects adjusted earnings of $1.80 to $1.90 per share on revenue of $6.21 billion to $6.35 billion. Analysts expect earnings of $1.90 per share on revenue of $6.55 billion. Symantec shares slipped 2.70 percent to $25.20 in the after-hours trading session.