Shares of Norton Antivirus maker, Symantec Corporation took a dip of more than 20% in the evening trading session on Thursday.
The drop followed an announcement that Symantec's audit committee was carrying out an internal probe in connection with undescribed concerns that were brought forward by an employee who previously worked for the company. The shares slumped $5.80 to exchange hands at $23.38 following the announcement.
A firm known as Rosen Law Firm, which represents investors, issued a statement in regards to the matter shortly after Symantec's announcement. Rosen Law said that it is looking into whether the cybersecurity giant may have issued misleading business material to investors.
Symantec on its part failed to release any specifics on the nature of the probe. However, it did reveal that the issue was likely to prevent it from filing its 2017 full-year results at the appropriate time.
SYMC Earnings & Outlook
Symantec posted a revenue of $1.2 billion in the first quarter of 2018. The figure represents an increase of 10% Y-o-Y. Its net loss for the quarter was $35 million, or $0.60 a share, compared to the $143 million that the company reported in the same quarter last year.
SYMC results finished above analysts' expectations on both revenue and earnings, but its full-year guidance fell short of Wall Street estimates.
This is one of those moves where there will likely be a lot of day trading momentum and a lot of traders watching it. So we will definitely want to keep this on our radar for continued selling pressure.
Symantec Comments
In its filing with the U.S Securities and Exchange Commission regarding its internal probe, the cybersecurity giant made the following statement: “The investigation is in its early stages and the company cannot predict the duration or outcome of the investigation. The company's financial results and guidance may be subject to change based on the outcome of the Audit Committee investigation. It is unlikely that the investigation will be completed in time for the company to file its annual report on Form 10-K for the fiscal year ended March 30, 2018 in a timely manner.”
