Symantec Corp.’s stock dropped in the extended session Thursday but bounced off after-hours lows after the cybersecurity company’s outlook fell short of Wall Street estimates.
Symantec SYMC, +2.20% shares, which had been down more than 12% after hours just before its earnings conference call, were last down 8.3% after hours. Shares had closed the regular session up 2.2% at $20.88. Symantec shares closed Thursday down 26% for the year, compared with a 5.8% gain on the S&P 500 index SPX, +0.49% and a 13% rise in the tech-heavy Nasdaq Composite Index COMP, +1.24% .
The Mountain View, Calif.-based company estimates adjusted earnings of 31 cents to 35 cents a share on revenue of $1.13 billion to $1.16 billion for the fiscal second quarter, and $1.47 to $1.57 a share on revenue of $4.67 billion to $4.79 billion for the year.
Analysts surveyed by FactSet expect earnings of 37 cents a share on revenue of $1.19 billion for the second quarter, and $1.56 a share on revenue of $4.83 billion for the year.
Symantec reported a fiscal first-quarter loss of $63 million, or 10 cents a share, compared with a loss of $133 million, or 22 cents a share, in the year-ago period. Adjusted earnings were 34 cents a share.
Revenue fell to $1.16 billion from $1.18 billion in the year-ago period. Analysts had estimated 33 cents a share on revenue of $1.15 billion. Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others had forecast earnings of 37 cents a share on revenue of $1.17 billion.
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“Following a successful fiscal year 2018 in our Enterprise Security segment, first quarter fiscal year 2019 enterprise implied billings were below expectations due to longer than expected sales cycles for large, multi-product platform sales,” Chief Executive Greg Clark said in a statement.
On an adjusted basis, enterprise security revenue fell 16% to $565 million from the year-ago period, while analysts expected $545.6 million. Consumer digital safety revenue rose 7% to $600 million, while analysts expected $605 million.
Symantec reported adjusted implied billing of $996 million for the first quarter, while analysts were looking for $1.1 billion, according to FactSet. Implied enterprise security billings were $453 million, down from $656 million in the year-ago period.
On the call, Chief Financial Officer Nick Noviello said Symantec expects enterprise security revenue of $535 million to $555 million and consumer digital safety revenue of $595 million to $605 million for the second quarter. Analysts expect $589.6 million in enterprise revenue and $604.5 million for the second quarter.
For the year, Noviello forecast $2.27 billion to $2.35 billion in enterprise revenue and $2.4 billion to $2.44 billion in consumer revenue for the year. Analysts expect $2.38 billion in enterprise and $2.46 billion in consumer.
It hasn’t been an easy earnings season for cybersecurity companies. Shares of FireEye Inc. FEYE, -1.91% finished down nearly 2% Thursday after even after the company’s earnings and outlook topped Wall Street estimates.
“It’s a market where the valuations are too damn high,” FireEye Chief Executive Kevin Mandia had told MarketWatch ahead of their report’s release Tuesday.
One company that went against trend was Fortinet Inc. FTNT, +14.18% . Shares rallied 14% to a record high Thursday after the company posted strong earnings and outlook late Wednesday.