Symantec shares drop after lowered 4Q outlook

Associated Press

MOUNTAIN VIEW, Calif. (AP) — Shares of Symantec Corp. took a hit Tuesday after the computer security and data storage company lowered its fourth-quarter adjusted earnings and revenue outlook citing weaker demand from its business customers.

The company now expects adjusted earnings of 38 cents per share, down from its earlier outlook of 41 cents to 42 cents per share. Analysts polled by FactSet are expecting 42 cents per share for the January-March period.

Symantec is also forecasting net income of 78 cents per share. This figure includes a large gain from its sale of its stake in a joint venture with Huawei Technologies Ltd. Its prior forecast, without the gain, was for earnings of 23 cents to 24 cents per share.

Symantec expects revenue of about $1.68 billion, down from its prior guidance of $1.72 billion to $1.73 billion and below Wall Street's expectations of $1.72 billion.

The company said it saw fewer deals for storage and server management licenses during the quarter

Symantec plans to release its earnings results after the market closes on May 2.

Shares of the Mountain View, Calif.-based company fell $1.78, or 9.8 percent, to $16.30 in midday trading. The stock has traded in the 52-week range of $14.94 to $20.50.

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