Symantec Corporation (NASDAQ: SYMC) stock fell over 16.1% on 10th May, 2019 pre-market session (as of 8:20 am GMT-4; Source: Google finance) after the company posted mixed results for the fourth quarter of FY 19. The stock also fell as Greg Clark, chief executive, will step down from his role effective immediately. The director Richard Hill would succeed Mr. Clark on an interim basis while a search process for a permanent CEO is underway. Further, Vincent Pilette, the financial chief of Logitech International and a former Hewlett Packard Enterprise executive, will be its new CFO, effective May 21. Meanwhile, SYMC has generated cash flow from operating activities in the fourth quarter of $547 million, up from $266 million in the year-ago period and Q4 capex was $54 million.
SYMC in the fourth quarter of FY 19 has reported the adjusted earnings per share of 39 cents, beating the analysts’ estimates for the adjusted earnings per share of 34 cents, analysts polled by FactSet. The company had reported 2 percent fall in the adjusted revenue of $1.19 billion in the fourth quarter of FY 19, which is slightly less than what analysts had forecast.
Enterprise revenue came in slightly below the low end of the guidance range, with consumer revenue at the high end of the guidance range. At the end of the fourth quarter, contract liabilities of $3.065 billion were down 2% year-over-year. This ending contract liabilities balance was negatively impacted by $218 million due to the impact of ASC 606. Operating margin for the fourth quarter was 29%, just below the guidance of approximately 30% due to lower revenues than expected in the Enterprise Security segment. Consumer Cyber Safety segment revenue of $605 million was flat year-over-year in constant currency.
Additionally, SYMC prepaid the $600 million term loan due August 2019 in the fourth quarter, bringing the total debt down to $4.5 billion. $1.75 billion of the year-end balance was comprised of convertible notes. The company has executed repurchases of 11 million shares for $252 million during the fourth quarter, and have approximately $1 billion remaining of the $1.3 billion share repurchase authorization as of the end of the FY19. Finally, the company spent $180 million on several tuck-in acquisitions during FY19.
For FY 19, the company said it expects revenue between $4.75 billion and $4.89 billion and earnings between 57 cents and 73 cents a share. For its current quarter, the company expects to generate between $1.17 billion and $1.2 billion in revenue.