INFRA
INFRA
INFRA
A number of high-profile cybersecurity firms have been left reeling as investors rushed to sell off their stocks after being disappointed by recent earnings results.
The latest company to be hit is Symantec Corp., which saw its share price fall by 8 percent, to $29.58, in after-hours trading Wednesday. That came after the company reported a fiscal second-quarter profit of 30 cents per share, missing consensus estimates. Analysts were hoping for earnings of 43 cents per share.
Rival security firm FireEye Inc. fared even worse on Wednesday, despite posting third-quarter profit and revenue that topped analysts’ forecasts. The company reported a loss of 4 cents per share, beating analyst projections of a 7 cent per share loss.
Unfortunately, those results were tempered by fourth-quarter sales guidance that came in below estimates. The company forecast revenue growth of 3 percent to $193 million at the midpoint of its guidance, below estimates of $196 million. That prompted shareholders to scramble to sell off the company’s stock, which fell by 12 percent to $14.45 per share.
Other cybersecurity companies were also hit hard this week. Shares of Israeli firm Check Point Software Technologies Ltd. fell almost 3 percent, to $103.10 a share, on Wednesday, once again thanks to a poor outlook. The company reported earnings per share of $1.30 on revenues of $454.63 million, beating analysts’ estimates of $1.24 on revenue of $449.19 million. However, Check Point said it was expecting fourth-quarter revenue of between $485 million and $525 million, below Wall Street’s forecast of $530.09 million.
With cybersecurity investors wary, Palo Alto Networks Inc. also saw its shares fall 2 percent, to $103.01, in Wednesday’s regular session. That company will report its earnings on Nov. 20.
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