Cybersecurity Company Symantec Is Set to Give Investors the Latest News


Symantec’s (NASDAQ: SYMC) impressive stock market place rally abruptly halted Opens a completely new Window. last November following a blended fiscal second-quarter report. The cybersecurity professional topped analysts’ revenue estimate but fell short of Wall Street’s earnings expectations, and weaker-than-expected direction extra to its woes.

But there was extra to Symantec’s final results than what satisfied the attention Opens a whole new Window. . The corporate experienced divested one of its underperforming business units and had stepped up its marketing efforts in a bid to consider benefit of a variety of high-profile facts breaches. Nevertheless, the industry remains unconvinced about Symantec’s ability to get back on the right track, along with the stock about where by it absolutely was a calendar year back.

Investment banking firms Jefferies and Credit Suisse have downgraded the stock a short while ago, stating the business will probably be not able to reach its personal steerage in foreseeable future quarters. But Symantec can demonstrate them erroneous when it releases its fiscal third-quarter effects on Jan. 31.
The headline

In February previous calendar year, Symantec compensated $2.three billion to acquire LifeLock, which provides id theft safety, so it’s going to delight in a good revenue and earnings comparison on the prior-year period just dependant on that. Wall Road expects Symantec’s revenue to increase sixteen.3% calendar year over year to $1.27 billion, with earnings expected to go approximately $0.44 for every share from last year’s $0.32 a share.

These estimates sit suitable in line using the firm’s own expectations, so it should not have substantially problem in meeting them. But all eyes might be around the guidance, and the company really should deliver on this front if it wants to get back into investors’ very good graces.
steering are going to be critical

Symantec shares happen to be under pressure this month soon after some Wall Avenue analysts reported that the firm’s direction for that existing year is unachievable. The corporate has already lessened its advice after this year, but there have been legitimate good reasons for that.

Symantec accomplished the sale of its website safety business for $950 million on Oct. 31, which falls in its 3rd quarter. It had to regulate its quarterly steering to account for this since this business supplied $203 million in revenue throughout the main 6 months in the calendar year. Then again, the LifeLock identity theft protection business obtained a shot inside the arm Opens a new Window. immediately after the Equifax info breach.

Symantec believed it greatest to capitalize on this opportunity, so it boosted its sales and internet marketing spend by 28% within the next quarter. This hurt the underside line from the quarter, but traders really need to glance outside of these short-term pains as Symantec is setting itself as many as get advantage of secular trends within the cybersecurity market.

Symantec estimates that hackers stole an estimated $172 billion from 978 million people across 20 nations around the world in 2017. The U.S. alone reportedly saw 143 million people slide prey to cybercrime, resulting in losses of $19.four billion. By comparison, fifteen.4 million consumers were identification theft victims inside the U.S. in 2016, with losses pegged at $16 billion, according to Javelin Technique & Research.

Looking ahead, id theft could keep increasing because of emerging tech developments such as the Internet of Things, which will allow hackers to steal knowledge from new Internet-connected devices. As a result, demand for services such as LifeLock’s might be around the rise, boosting Symantec’s business and its opportunities to cross-sell a lot more to customers.

For instance, Symantec has launched a campaign to cross-sell its Norton antivirus and spyware removal software to LifeLock customers. The great news is that this initiative has gained “solid early traction,” in accordance to CEO Greg Clark.

It makes sense to ignore the short-term noise because Symantec is capable of getting better from the long run and also the earnings report will give investors a numbers-based glimpse at how things are going.

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