January 23, 2008, 8:55 PM — With strong international sales and growth in its services business, Symantec
reported earnings Wednesday that beat analyst expectations.
Excluding charges, revenue at the security and storage company grew 15 percent
year over year, to US$1.53 billion for the period ended Dec 28. Analysts had
been expecting revenue of $1.45 billion, according to a consensus estimate from
Thomson Financial. Earnings were $0.33 per share, ahead of the analyst estimate
of $0.28 per share.
Symantec's international revenue -- which represents more than half of the
company's business -- grew by 21 percent year over year, Symantec said. The
Europe, Middle East and Africa region was the fastest-growing, with revenues
up 26 percent from the previous year. Revenue in Asia grew by 19 percent, the
company said.
Service sales totalled just 6 percent of Symantec's revenue, but they grew
by 40 percent from the previous year.The company's consumer and enterprise security
businesses grew by just 8 percent and 9 percent, respectively. Symantec's data
center management group saw sales jump 11 percent over the same period.
Symantec raised guidance for its full fiscal year 2008, which ends March 28.
It now expects revenue to be in the range of $5.90 billion to $5.94 billion,
with earnings per share between $1.24 and $1.26. Analysts had been expecting
annual revenue of around $5.79 billion with earnings per share at $1.16, according
to Thomson.
The company's shares leapt more than 7 percent on the results in after-hours
trading, reaching $16.40 late Wednesday afternoon.
