) is slated to report fourth-quarter 2014 results on May 8, 2014.
Last quarter, the company delivered a positive 23.08% earnings
surprise. Let's see how things are shaping up for the company
prior to the announcement.
Factors to Consider this Past Quarter
In the last reported quarter, Symantec delivered
better-than-expected results. Nonetheless, revenues across all
its segments declined due to lower-than-expected demand.
Re-organization of the sales strategy aided operating margins
which in turn supported net income. However, the guidance for the
fourth quarter remained tepid but fiscal-year outlook was
Although, realignment of the organization's structure, by
eliminating several mid-level management positions, bolstered the
bottom line, sales force reorganizations have not yet yielded the
desired results. On the other hand, Symantec's sales were
impacted by the disruptions in customer relationships.
Although, we believe that demand for Symantec's authentication
and managed security services (MSS) businesses would lend some
support to the top line, continued investments to bring about new
and innovative products could also impact margins in the near
term. Competition from
) as well as uncertainty over PC sales are going to affect its
User Productivity & Production segment.
Our proven model does not conclusively show that Symantec is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. However, this is
not the case here as elaborated below.
Negative Zacks ESP:
Earnings ESP represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate. The Most Accurate
estimate stands at 37 cents while the Zacks Consensus Estimate is
higher at 38 cents resulting in an ESP of -2.63%.
Symantec's Zacks Rank #3 (Hold) when combined with a negative ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
), has an Earnings ESP of +1.18% and a Zacks Rank #2 (Buy).
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SYMANTEC CORP (SYMC): Free Stock Analysis
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