symantec

FIRSTSERVICE CORP. $16.91, symbol FSV on Toronto, moved up almost 29% this week after reporting that revenues in the three months ended June 30, 2008 rose 23.6%, to $457.8 million from $370.5 million. (All figures except share price in U.S. dollars.) Earnings per share excluding one-time items rose 6.3% to $0.51 from $0.48. That was well above consensus expectations. FirstService companies include commercial real estate firm, Colliers International, residential property manager, FirstManagement Partners, and property improvements provider, The Franchise Company. FirstService recently completed the sale of its Integrated Security Services division for $187.5 million. It may now use that cash to make acquisitions of companies selling at depressed prices....

SONY CORP. ADRs $37.83, New York symbol SNE, fell roughly 10% this week after it reported earnings that fell short of consensus forecasts. In its first fiscal quarter ended June 30, 2008, earnings fell 39.2%, to $0.31 per ADR from $0.51 a year earlier. The drop was mainly due to lower profits at its TV division, where intense price competition and rising raw material costs have squeezed profit margins. Lower results from its cellphone and movie operations also contributed to the weaker earnings. However, overall sales improved 16.2%, to $18.7 billion from $16.1 billion. If you disregard foreign currency changes, sales were unchanged. The slowing U.S. economy and weak dollar could hurt Sony’s growth in fiscal 2009. But recent cost cuts should improve its long-term profitability. As well, rising sales of its PlayStation 3 video game player should lead to more licensing revenue from game designers. Sony is a buy for long-term gains....

AMERIGO RESOURCES, $1.34, symbol ARG on Toronto, has a contract with Codelco, Chile’s state-owned copper producer, to process the tailings from El Teniente, the world’s largest underground copper mine. Tailings are the waste rock produced in the mining process. Amerigo treats the tailings to extract copper and molybdenum. Amerigo rose this week after reporting lower power costs at El Teniente for the three months ended June 30, 2008. Electricity prices fell 24.7%, to $0.2462 per kilowatt hour from $0.3268, due to higher rainfall and additional hydro-electric sources. (All figures except share price in U.S. dollars.) That’s after Amerigo’s first quarter electricity costs rose 285%, to $13.9 million from $3.6 million. Amerigo has bought two 10-megawatt electricity generators in order to become energy self-sufficient. It expects these to begin generating power later this year. Labor troubles at El Teniente are now settled, but disruptions in the supply of tailings in April and May hurt Amerigo’s second quarter production. Copper production fell 28.6%, to 7.1 million pounds from 9.9 million pounds a year earlier. Molybdenum production fell 27.9%, to 147,508 pounds from 204,647 pounds. However, production should recover in the second half of 2008....

CINTAS CORP. $26 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.7 million; Market cap: $4.0 billion; WSSF Rating: Average) operates mainly in North America. The company now plans to offer uniform rental and other business services in Europe, Latin America and Asia. This expansion will make it easier for Cintas to serve its clients with international operations. This expansion also cuts its exposure to a slowing U.S. economy. Cintas is a buy. BRIGGS & STRATTON CORP. $14 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 49.6 million; Market cap: $694.4 million; WSSF Rating: Above average) has agreed to buy Victa Lawncare Pty. Ltd. of Australia, which makes lawnmowers and other outdoor power equipment. The $22 million price is equal to 59% of the $37.1 million or $0.75 a share that Briggs earned in the three months ended March 31, 2008....

SYMANTEC, $19.99, symbol SYMC on Nasdaq, rose this week after it reported that earnings excluding one-time items rose 36.4% in the three months ended March 28, 2008, to $309.4 million from $226.8 million a year earlier. Earnings per share rose 50%, to $0.36 from $0.24, on 8.2% fewer shares outstanding. Excluding the impact of acquisitions, revenues rose 14.0% to $1.55 billion from $1.36 billion. In the latest quarter, earnings gained from strong sales in Europe (up 17.3%) and Asia (up 18.7%). International sales (52.5% of revenues) rose 15.2%. U.S. sales (47.5% of revenues) rose 11.5%, despite difficult economic conditions. Symantec’s consumer business, which represents 29% of the company’s total revenues, grew 9.9%. Revenues from Symantec’s services business (6.2% of revenues) grew 11.8%. Security and data management sales (28.4% of revenues) grew 21.5%, and storage and server management sales (36.4% of revenues) rose 10.6%....

SYMANTEC CORP. $17 (New York symbol SYMC) has acquired privately held AppStream for an undisclosed sum. The two companies have been business partners since 2006. AppStream develops technology that makes it easier to distribute computer programs across large networks. Demand for software like this is growing strongly. Buy. J.C. PENNEY CO. $41 plans to scale back its expansion plans for 2008 due to slowing consumer spending. It will now open 36 new stores instead of 50, and renovate 20 stores instead of 65. It will invest some of the savings in other growth opportunities, such as its new “American Living” line of clothing and home furnishings. Buy. CINTAS CORP. $29 earned $0.53 a share in its third fiscal quarter ended February 29, 2008, up 10.4% from $0.48 a year earlier. Revenue grew 7.8%, to $976.0 million from $905.4 million. The recent economic slowdown has hurt demand for Cintas’s uniform rentals and other business services. However, cost controls should help it stay profitable. Buy.

BROADRIDGE FINANCIAL SOLUTIONS, $16.76, symbol BR on New York, fell more than 7% this week after Standard & Poor’s lowered its credit rating on certain of the company’s obligations. S&P is concerned that Broadridge is taking on too much risk, especially at its Ridge Clearing subsidiary, given today’s difficult financial environment in the U.S. Broadridge offers services to the investment industry in three main areas: investor communications; securities processing; and transaction clearing. Broadridge mails and processes 70% of all proxy votes. The company stands to gain from the increasing complexity of securities regulations and increasing levels of share ownership. Despite volatile investment industry conditions, Broadridge continues to win new clients. For example, RBC Wealth Management has just adopted Broadridge’s Brokerage Processing Services platform. LBBW Securities, a broker-dealer servicing German institutional clients investing in the U.S., is outsourcing its trade processing to Broadridge....

SYMANTEC CORP. $18 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 846.4 million; Market cap: $15.2 billion; WSSF Rating: Average) has launched a service called Symantec Protection Network, which lets small and mid-sized businesses back up their data and have it protected at an off-site facility. This new service nicely complements the company’s Backup Exec on-site backup and restore software. Products and services like these help businesses protect sensitive data, and quickly recover from hardware failure or other problems. Meanwhile, Symantec’s earnings rose 16.3% in the three months ended December 31, 2007, to $291.7 million from $250.8 million a year earlier. These figures exclude unusual items. Earnings per share rose 26.9%, to $0.33 from $0.26 on 9% fewer shares outstanding. Excluding the impact of acquisitions, revenues rose 15.3% to $1.53 billion from $1.32 billion. Symantec is a buy for aggressive investors.

SYMANTEC CORP. $17.88 (Nasdaq symbol SYMC; SI Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 846.4 million; Market cap: $15.1 billion) makes software that helps protect computers from viruses and electronic attacks. Its best known product is the top selling Norton Anti-Virus program. Symantec continues to cut its reliance on sales to consumers by increasing its corporate operations. Security products and services for businesses also give it steadier revenue streams than consumer software sales. As part of this strategy, Symantec spent $13.5 billion in 2005 to acquire Veritas Software Corp., which specializes in data storage products for businesses and corporate security products. The deal was one of the biggest software industry acquisitions ever....

SYMANTEC, $16.38, symbol SYMC on Nasdaq, rose more than 10% this week after it reported that earnings excluding one-time items rose 16.3% in the three months ended December 31, 2007, to $291.7 million from $250.8 million a year earlier. Earnings per share rose 26.9%, to $0.33 from $0.26 on 9% fewer shares outstanding. Excluding the impact of acquisitions, revenues rose 15.3% to $1.53 billion from $1.32 billion. In the latest quarter, earnings gained from strong sales in Europe and Asia, and from the success of its Norton 360 AntiVirus software, which now accounts for 25% of its consumer sales. Symantec’s consumer business, which represents 29% of the company’s total revenues, grew 8%. Revenues from Symantec’s services business (6% of revenues) grew 40%. Security and data management sales (29% of revenues) grew 9%, and data center management sales (29% of revenues) rose 11%. In April 2007, Symantec acquired Altiris (management software) for $830 million. In December 2007, it bought Vontu (data loss prevention software) for $350 million. The company may make further acquisitions in 2008....