Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, July 30, 2010

Article Excerpt

SYMANTEC CORP., $12.97, Nasdaq symbol SYMC, reported earnings that matched the consensus estimate this week. However, weaker-than-expected revenue caused the stock to fall 14%. In its first quarter, which ended July 2, 2010, the software firm earned $284 million. That’s up 2.5% from $277 million a year earlier. Earnings per share rose 6.1%, to $0.35 from $0.33, on fewer shares outstanding. These figures exclude non-recurring items, such as costs to integrate acquisitions and writedowns of buildings Symantec plans to sell. Revenue was flat, at $1.43 billion. The company gets half of its revenue from international customers, so the higher U.S. dollar hurt the contribution of its overseas businesses. Without the negative impact of foreign-exchange rates, revenue would have risen 2%. Still, the latest revenue fell short of the consensus estimate of $1.47 billion. That’s because many of Symantec’s business clients are holding off on buying software because of the uncertain economy. Corporate customers account for two-thirds of Symantec’s revenue. Sales of anti-virus and…