Published: Sat, May 12, 2018
Finance | By Claude Patterson

Symantec Shares Drop on Lower Forecast, Internal Investigation

Symantec Shares Drop on Lower Forecast, Internal Investigation

Symantec Corp's shares sank nearly 30% on Friday after the cyber-security firm said it was investigating concerns raised by a former employee but gave little other detail, puzzling investors and Wall Street analysts.

More specifically, the Company stated its audit committee retained independent counsel and other advisers to assist in the investigation and it contacted the SEC concerning the matter.

The share move, if duplicated after the bell, would knock US$5 billion off Symantec's market value compared to the close of trading on Thursday.

The investigation, in its early stages, is unlikely to be completed to file the annual report in time, according to the company.

Hagens Berman Sobol Shapiro LLP alerts investors in Symantec Corporation (NASDAQ:SYMC) to the Firm's investigation into possible securities law violations in connection with matters which are the subject of an internal investigation by the Company's Audit Committee.

The company's net loss narrowed to $35m, or six cents per share, in the fourth quarter, from $143m, or 23 cents per share, a year earlier.

In addition to making the internal investigation public, Symantec said it expects revenue for its fiscal first quarter to be between $1.135 billion and $1.165 billion, the midpoint of which would be flat with Symantec's sales in the same period a year ago.

"While we've seen companies put matters of outstanding, transactions, litigation or investigation off-limits for Q&A, we've never seen a company cut off any Q&A on any topic from analysts or investors", Weiss said. Analysts projected $1.19 billion. Revenue rose 9.6 percent to $1.22 billion, ahead of the estimate of $1.19 billion.

However, Symantec's outlook for fiscal 2019 results fell short of analyst expectations.

Symantec's forecasts for profit per share and revenues lagged Wall Street analyst expectations. Revenue will be $1.14 billion to $1.17 billion, Mountain View, California-based Symantec said Thursday in a statement.

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