Symantec (SYMC 30.70, -2.44) has fallen 7.4% in pre-market, as cautious guidance for the first quarter overshadows in-line fourth quarter results. The early decline has knocked the stock off its record high that was registered yesterday.
The software company reported in-line fourth quarter earnings of $0.28 per share on a 34.7% year-over-year surge in revenue to $1.18 billion, which also matched expectations.
Symantec's revenue growth was fueled by strong demand from business customers. Enterprise Security revenue grew 48.0% year-over-year to $689 million while Consumer Digital Safety revenue increased 20.0% year-over-year to $487 million.
In terms of geography, U.S. revenue grew 45.0% year-over-year to $662 million while International revenue grew 23.0% to $514 million.
Gross margin declined 50 basis points to 84.1%.
Symantec expects a first quarter slowdown, evidenced by below-consensus guidance for earnings between $0.28 and $0.32 per share. The company expects revenue between $1.19 billion and $1.22 billion, which is also shy of market expectations.
However, the company expects that the first quarter slowdown will be offset by a strong finish to the fiscal year. Symantec raised its earnings guidance for the full year, expecting bottom-line results between $1.75 and $1.85 up from previous guidance of $1.70-$1.80 per share. Revenue for the full year is expected between $5.10 billion and $5.20 billion.