Symantec (NYSE:SYMC) reports its fiscal fourth quarter earnings on May 9, and we expect the company to end its fiscal year on a good note. Besides understanding how the company’s two reporting segments have fared in the previous quarter, we will be looking closely at management commentary around how it plans to navigate fiscal 2020. We currently have a fair value estimate of $21 per share for Symantec. Our interactive dashboard on Symantec’s Q4 Expectations outlines our forecasts and estimates for the company. You can modify any of the key drivers to visualize the impact of changes on its valuation, and see all of our Technology company data here.
A Quick Look At Symantec’s Revenue Sources
Symantec makes money selling cyber-security products, solutions and services to corporates and retail customers. There are two sources of Symantec’s revenue ($4.8 billion in fiscal 2018)
- Enterprise Security (fiscal 2018 revenue of $2.6 billion, 53% of total): Revenues are derived from the sale of the company’s products offering threat- and information-protection across cloud and on-premise applications to corporate and government customers.
- Consumer Security (fiscal 2018 revenue of $2.3 billion, 47% of total): Revenues are derived from the sale of products and services including Norton Security, LifeLock Identity Theft Protection and Norton Wi-Fi Privacy to individuals and small businesses.
Symantec added $1.25 billion in total revenues from 2016 to 2018 (CAGR of 16%). Revenue growth over this period was primarily due to a strong performance by the consumer segment, although the enterprise segment’s performance has improved considerably over recent quarters.
How Have Symantec’s Segment Revenues Trended Over Recent Quarters?
- Consumer Security: Symantec’s Consumer Security revenues have reported sizable declines year-on-year for each of the last four quarters, and we expect the trend to have continued in Q4. For Q3, revenues for the segment were $609 million, and we expect the figure to be around $585 million for Q4 2019.
- Enterprise Security: Symantec’s Enterprise Security division has more than made up for the weak showing by the consumer arm over recent quarters, and has reported steady year-on-year revenue gains. We expect revenues for this segment to jump 11% year-on-year to a new high of over $680 million in Q4 2019.
We forecast Symantec’s EPS figure for full-year 2019 to be $0.43. Taken together with our forward P/E multiple of 50x for the company, this works out to a $21 per share price estimate for the company’s stock, which is around the current market price.
Do not agree with our forecast? Create your own price forecast for the Symantec by changing the base inputs (blue dots) on our interactive dashboard.
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