Symantec numbers way above market estimates- INTU, IBM

Northern, WI 1/25/2013 (avauncer) –Robust demands for data-management tools helped Symantec Corporation (NASDAQ: SYMC), world’s largest antivirus program maker, to report high third quarter turnover and profit.

Symantec Corporation (NASDAQ:SYMC) stock saw a 3% upward movement to $21.49 in New York. Its revenue for the period ending Dec. 28 also saw a rise of 4.4% to $1.79 billion compared to the same time last year. Bloomberg data revealed that analysts had made a sales forecast of $1.74 billion for the California-based company.

The company’s main core business is selling storage and server management products which saw a rise of 7.8% to $666 million. Sales from security products were up 3.3%.Beating analysts’ forecast of profits to be 38 cents per share, the actual figure turned out to be 45 cents per share.

An analyst at FBR Capital Markets said that CEO Steve Bennett will formulate a strategic proposal that might include disinvestments and cost-cutting measures to strengthen their storage and security services.

Symantec Corporation (NASDAQ:SYMC) brought in Dan Schulman as a non-executive chairman. Bennett, former CEO of Intuit Inc. (NASDAQ:INTU) was named CEO after the board removed Enrique Salem.

Symantec Corporation (NASDAQ:SYMC) had lost a lot of ground in the data-storage business to EMC Corp. and International Business Machines Corp. (NYSE:IBM) This led Symantec Corporation (NASDAQ:SYMC) to mull over selling off that division. But, the sudden surge in the data-storage market makes the disinvestment doubtful.

Steve Ashley, analyst at Robert W. Baird & Co., said that there were some unexpected surprises thrown up with the main surprise being the surge in demand in the data-storage areas. Symantec Corporation (NASDAQ:SYMC) may now choose to carry out cost-cutting by trimming down jobs and reorganizing administrative duties instead of selling of the data-storage division.

Ashley commented that they would hear from them that the company had many acquisitions in the past and these acquisitions have not been properly integrated on the back-office areas. A webcast has been planned by Symantec Corporation (NASDAQ:SYMC) to deliberate over issues such as strategic and operational planning, fund allocation and financial outcomes.

No Symantec Corporation (NASDAQ:SYMC) spokesman was available for comment.

The shares of Symantec Corporation (NASDAQ:SYMC) were up 1.16% to $21.71. The shares of Intuit Inc. (NASDAQ:INTU) were up by 0.24% to close at $63.82. International Business Machines Corp. (NYSE:IBM) shares were down by 0.15% to close at $204.42