McAfee (MFE) NewsBite - McAfee Reports Stronger-Than-Expected Earnings

Posted on Friday, August 01, 2008 10:31 AM

McAfee Inc. (MFE) opened at 34.60. So far today, the stock has hit a low of 34.29 and a high of 35.00. MFE is now trading at 34.81, up 2.06 (5.95%). The stock hit its 52 week high of 41.66 in October and set its 52 week low of 27.80 in January. MFE slipped at the end of 2007, but has moved to the upside since the beginning of this year. Security software maker McAfee announced yesterday evening its second-quarter profit dipped to $47.8 million, hurt by hefty charges and a legal settlement. The company posted earnings of 52 cents per share, while analysts forecast earnings of 45 cents per share. Revenue climbed to $396.8 million, just above analysts' view for $369.1 million in sales. Technical indicators for the stock are bearish and steady while S&P gives MFE a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a September bull-put credit spread below the $30 range. MFE stock could fall up to 13.8% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]