SYMC $30.60 This will be interesting in light of EFX's hack and subsequent free offer to every U.S. consumer. They bought Lifelock (LOCK) back in February for $24/share, at the time a 16% premium from where it was trading. So on one hand cyber-security should continue to do well; on the other hand, a big fat revenue cash cow for them has been rendered (at least partially) obsolete as the service is being offered free for a year (at least) by EFX. Need to dig into SYMC's report to see how much LOCK contributes to the top and bottom line... but for now... it should be good for an easy short scalp pre-market Friday.
I'd imagine they will have to restate 2018 guidance, at least a little bit, as people can now have a similar product for free. And all those commercials they run.... pfff...all for not now. Its the same product. From their website regarding the purchase of LOCK: Given the expected closing in the first calendar quarter of 2017, Symantec expects the transaction to have no impact to its quarter ending December 30, 2016. The transaction is also not expected to have a material impact to Symantec’s fiscal year 2017 financial results, and the company is reaffirming its prior fiscal year 2017 financial guidance at this time: non-GAAP revenue of $4,040 - $4,120 million; non-GAAP operating margin of 27-29%; and non-GAAP earnings per share of $1.12-$1.18. The company is also reaffirming its prior fiscal year 2018 non-GAAP earnings per share guidance of $1.70-$1.80. Looks like a pretty big chunk of the pie actually, albeit they don't break out Lifelock specifically ...yoy increase has to be attributable to that. Not sure how big of a sting it will be... but it sure as hell ain't gonna add revenue.
http://investor.symantec.com/About/...arter-and-Full-Year-2018-Results/default.aspx "The Audit Committee of the Board of Directors has commenced an internal investigation in connection with concerns raised by a former employee. The Audit Committee has retained independent counsel and other advisors to assist it in its investigation. The Company has voluntarily contacted the Securities and Exchange Commission to advise it that an internal investigation is underway, and the Audit Committee intends to provide additional information to the SEC as the investigation proceeds. " .