Symantec Corporation SYMCis slated to release fourth-quarter fiscal 2018 results on May 10.
Notably, Symantec has a mixed earnings surprise history. In the trailing four quarters, the stock surpassed the Zacks Consensus Estimate twice, matched it once and fell short of the same on one occasion. It delivered an average positive earnings surprise of 3.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Symantec’s continuous efforts to strengthen its product suite are likely to benefit its top line, given the surge in demand for cybersecurity-related products. Recently, the company announced that it is enhancing security for Microsoft’s MSFTAzure and Office 365 products.
Additionally, the company has been gaining from its acquisition initiatives, which are broadening its customer base and enhancing its capabilities in identity protection, a huge concern for almost every sector, be it financials, retail or technology. The buyouts have helped it reduce its dependency on the PC market and strengthen position in the enterprise security market.
However, we remain slightly cautious about the company’s lower-than-expected revenues in the last reported quarter due to a faster-than-expected booking mix shift toward more “ratable revenue recognition.” This might impact financials in the soon-to-be reported quarter.