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Symantec shares slump on results, financial outlook |
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Thursday, 02 February 2006 |
LOS ANGELES - Symantec Corp.s stock slid Wednesday, as investors were disappointed with the security and storage software firms quarterly revenue and outlook.
Stock of the Cupertino, Calif.-based company fell $1.25, or 6.8 percent, to close at $17.13 on the Nasdaq Stock Market.
Volume was heavy, and Wednesdays weakest level of $16.71 came close to the 52-week low of $16.32 set Dec. 20.
There was a 52-week high of $24.38 on July 20.
After Tuesdays close, Symantec reported net income dropped because of charges following its acquisition of the software company Veritas.
The producer of the popular Norton line of antivirus and security software issued an outlook for the current quarter and fiscal year that fell shy of expectations. Also, its quarterly revenue came up short of the average analyst estimate.
At Bear Stearns, analyst John DiFucci said he viewed the results as "somewhat disappointing" and cautioned that "the most significant risk to Symantec has yet to be fully realized in the companys results."
DiFucci rates the companys stock "underperform."
Symantec reported fiscal third-quarter net income fell to $90.7 million, or 8 cents a share, from $163.6 million, or 22 cents, in the year-earlier period.
Excluding items and adjusted to include Veritas results in the year-earlier quarter, the companys profit increased 5 percent to $282.4 million, or 26 cents a share, from $269 million, or 22 cents a share.
Revenue for the period ended Dec. 31 climbed 65 percent to $1.15 billion from $695.2 million, helped by large deals and Veritass contribution. |