On Jan 26, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
COMPUWARE CORP (CPWR): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
INTUIT INC (INTU): Free Stock Analysis Report
NETSOL TECH INC (NTWK): Free Stock Analysis
SYMANTEC CORP (SYMC): Free Stock Analysis
To read this article on Zacks.com click here.
With a decent return of 38.9% over the past 6-months and a
positive estimate revision trend, this provider of security
solutions is an attractive investment opportunity.
Why the Upgrade?
An upbeat third quarter 2013, solid restructuring plans to boost
margins and plans to return 50.0% of free cash flow through share
buyback and dividends have contributed to the upgrade.
Symantec reported third quarter earnings per share of 40 cents,
ahead of the Zacks Consensus Estimate of 33 cents and up 2.6%
from the year-ago quarter.
Revenues grew 4.4% year over year to $1.79 billion, supported by
good performance across geographies and segments.
Margins were lackluster due to higher operating costs. But solid
cash position, unchanged debt position and continued share
repurchase were the quarter's positives.
There was no explicit guidance disclosed during the earnings
call. However, the company announced plans to increase focus on
growing organic revenues and return 50.0% of free cash flow
through share buybacks and dividend payouts.
The company's newly appointed CEO, Steve Bennett, who had been
General Electric Co.
), also announced plans to lay off managers and staff across
certain operating divisions in order to boost operating margins.
On the other hand, management stated that research and
development expenses would increase on account of new product
Post earnings release, only one estimate was revised upward for
fiscal 2013 in the last 7 days, leaving the Zacks Consensus
Estimate of $1.47 unchanged.
For the past four quarters, the company has posted an average
surprise of 10.5%. Considering the organizational and strategic
changes by the CEO, Symantec has the potential to post a positive
earnings surprise in the upcoming quarter.
Other Stocks to Consider:
Investors could also consider other application solutions
providers that are doing well right now.
NetSol Technologies Inc.
) has a Zacks Rank #1 (Strong Buy) and
) has a Zacks Rank #2 (Buy).