Symantec Beats Estimates Yet Again

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Symantec (NAS: SYMC) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q3), Symantec met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved, and earnings per share expanded significantly.

Margins increased across the board.

Revenue details
Symantec logged revenue of $1.72 billion. The 25 analysts polled by S&P Capital IQ anticipated revenue of $1.71 billion. Sales were 6.9% higher than the prior-year quarter's $1.60 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.42. The 29 earnings estimates compiled by S&P Capital IQ averaged $0.41 per share on the same basis. GAAP EPS of $0.32 for Q3 were 88% higher than the prior-year quarter's $0.17 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 85.5%, 50 basis points better than the prior-year quarter. Operating margin was 17.8%, 230 basis points better than the prior-year quarter. Net margin was 14.0%, 580 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.74 billion. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $6.79 billion. The average EPS estimate is $1.64.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 526 members out of 619 rating the stock outperform, and 93 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give Symantec a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Symantec is outperform, with an average price target of $21.92.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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