August 2, 2017 / 8:16 PM / 2 years ago

Symantec raises FY revenue forecast above estimates

(Reuters) - Symantec Corp raised its full-year adjusted revenue forecast above analysts’ estimates as the cyber security provider benefits from strong demand in its enterprise division.

The Symantec logo is pictured on a screen in Singapore June 13, 2016. REUTERS/Thomas White

Shares of the Norton antivirus maker were up 2.5 percent at $32 in after-hours trading on Wednesday.

Revenue in Symantec’s enterprise security division, its biggest by sales, jumped 34 percent to $646 million in the first quarter.

The company is getting a lift from a spate of cyber attacks since the “WannaCry” incident in May that infected more than 300,000 computers across the globe.

Symantec has also been making strategic purchases to strengthen offerings across its enterprise and consumer divisions.

The company bought cloud security provider Blue Coat and identity theft protection firm LifeLock in 2016, and recently acquired Israeli firm Fireglass.

Separately, the company announced that it has agreed to sell its website certification business to DigiCert Inc for about $950 million. Reuters reported that Symantec is considering selling this business.

Excluding items, Symantec reported a profit of 33 cents per share and revenue of $1.23 billion in the first quarter ended June 30.

Analysts on average had expected a profit of 31 cents per share, according to Thomson Reuters I/B/E/S.

Symantec raised its full-year adjusted revenue forecast to range between $5.16 billion and $5.26 billion, from earlier expectations of $5.10 billion to $5.20 billion.

Excluding items, the company said it expects to report earnings of between $1.79 per share and $1.89 per share, up from its earlier expectation of $1.75 per share to $1.85 per share.

Analysts on average were expecting revenue of $5.15 billion and profit of $1.79 per share.

Up to Wednesday’s close, Symantec’s shares had risen nearly 31 percent this year.

Reporting by Pushkala A in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila

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