Morningstar | SYMC Updated Star Rating from 01 Feb 2019
No-moat Symantec's third-quarter revenue of $1.2 billion beat consensus estimates and the company raised its revenue and EPS guidance for the remainder of fiscal 2019 due to strong enterprise security demand in the December quarter. Although revenue stayed flat compared with the prior year, operating margin increased to 14% from 8% as Symantec reeled in operating expenses. We believe that Symantec continues to benefit from individuals being concerned about identity or credit fraud alongside enterprises requiring nascent technologies for cloud and end point protection. However, we note a crowded enterprise cybersecurity market place will challenge Symantec's long-term growth and we maintain our fair value estimate of $19.Symantec provided fourth-quarter guidance midpoints of $1.2 billion and 9.5% operating margin. For fiscal 2019, management expects 8% operating margin on $4.73-$4.76 billion, and we model Symantec achieving around $4.76 billion and just north of 8% operating margin. At the segment level, our fiscal 2019 expectations are a 5.6% increase in the consumer digital safety division and an 8% decline in enterprise security versus the prior year. In our view, both businesses will grow in fiscal 2020 due to Symantec offering a broader enterprise portfolio, inclusive of its recent acquisitions of Javelin Networks for active directory security and Appthority for mobile application vulnerability analytics.
The company announced their CFO Nicholas Noviello, who's been in the role since December 2016, would be stepping down in the upcoming months to pursue different opportunities. Noviello is expected to assist in finding his replacement. After being marred with accounting issues in 2018, we expect the board to find a candidate that can instill investor confidence in Symantec's finances. Last, Symantec announced an increase to its existing share buyback plan to a $1.3 billion authorization amount.
Symantec is a provider of cyber security. The company provides cyber security products, services and solutions to organizations and individuals worldwide. The company's Enterprise Security portfolio includes a mix of products, services and solutions, delivered as part of an Integrated Cyber Defense platform. The company's platform unifies cloud and on-premises security to provide threat protection and information protection across endpoints, networks, email, and cloud applications. The company also provides services, support services, and cyber security services. The company's Cyber Safety solutions from Norton LifeLock help consumers protect their devices, online privacy, identities, and home networks.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.