Why Symantec Soared

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of security software specialist Symantec (NAS: SYMC) soared today by as much as 17% after the company announced earnings and canned its CEO.

So what: First-quarter revenue came in at $1.7 billion, up slightly from a year prior. Non-GAAP earnings per share totaled $0.43. Those profits topped analyst expectations, which called for $0.38 per share. Symantec also repurchased 19 million shares during the quarter for $301 million.


Now what: Perhaps more exciting is the announcement that Enrique Salem is stepping down as CEO, effective immediately, and is being replaced by the current Chairman Steve Bennett, who will also remain chairman. Bennett said the board found it in Symantec's "best interests" to change leadership. Salem has been with the company for 19 years and was its CEO for the past three. The market is overlooking the soft guidance, and investors are mostly bullish on the shakeup, hoping that Bennett can spearhead a positive strategic shift.

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The article Why Symantec Soared originally appeared on Fool.com.

Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.

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