Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, November 7, 2014

Article Excerpt

SYMANTEC CORP., $24.97, Nasdaq symbol SYMC, sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers. In its fiscal 2015 second quarter, which ended October 3, 2014, Symantec’s earnings fell 7.5%, to $332 million from $359 million a year earlier. Per-share earnings declined 5.9%, to $0.48 from $0.51, on fewer shares outstanding. Even so, that beat the consensus forecast of $0.43. Revenue declined 1.2%, to $1.62 billion from $1.64 billion, but still matched the consensus estimate. The declines are mainly because consumers bought less security software. Higher income taxes also hurt the company’s earnings. In addition, Symantec spent a high 17% of its revenue on research. However, the company is benefiting from its restructuring, which includes job cuts and simplifying its product lines. Its gross profit margin (gross profits as a percentage of revenue) improved to 28.7% in the latest quarter from 27.5% a year earlier. The company expects its gross profit margin to rise to at least 30% in the fourth…