Symantec Corporation (NASDAQ:SYMC) stock was falling hard on Friday following news of an internal investigation at the company.
Symantec Corporation says that the company’s Audit Committee of the Board of Directors is starting an internal investigation on concerns from a previous employee. The company notes that the investigation is still only in its early stages and that it doesn’t know when it will finish.
What may be most harmful to SYMC stock is a comment made by the company in this announcement. It notes that the investigation may result in changes to its financial results and guidance, depending on what the Audit Committee finds. It doesn’t expect the investigation to end in time for its 10-K filing for its fiscal year that ended on March 30, 2018.
Symantec Corporation says it has contacted advisors to help with the investigation. It is also letting the SEC know about the process and will update it through the Audit Committee.
The internal investigation announcement mars a solid earnings report for its fiscal fourth quarter of 2018. This includes earnings per share of 46 cents on revenue of $1.22 billion. Wall Street was looking for earnings per share of 39 cents on revenue of $1.19 billion for the period.
Symantec Corporation also provided mediocre guidance for its fiscal 2019 year. It is expecting earnings per share between $1.50 and $1.65 with revenue ranging from $4.76 billion to $4.90 billion. Analysts are looking for earnings per share of $1.62 on revenue of $4.93 billion for the year.
SYMC stock was down 34% as of Friday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.