NortonLifeLock NLOK is scheduled to release fourth-quarter fiscal 2021 results on May 10.
The company projects quarterly revenues between $655 million and $665 million. The Zacks Consensus Estimate for revenues is pegged at $657.9 million, calling for a year-over-year decrease of 7.9%.
The company projects non-GAAP earnings from continuing operations between 37 cents and 39 cents per share. The Zacks Consensus Estimate is pegged at 37 cents per share, suggesting a whopping 42.3% year-over-year jump.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 24.1%.
NortonLifeLock Inc. Price and Consensus
NortonLifeLock Inc. price-consensus-chart | NortonLifeLock Inc. Quote
Let’s see how things have shaped up prior to the upcoming announcement.
Factors at Play
NortonLifeLock’s fiscal fourth-quarter results are likely to reflect benefits from increased demand for cybersecurity and ID analytics solutions amid the COVID-19 pandemic-induced work-from-home and online-learning wave.
Notably, a huge global workforce has been working remotely in order to contain the spread of the virus. However, more people logging into employers' networks requires greater security. This trend is likely to have spurred demand for the company’s products during the fiscal fourth quarter.
Moreover, the fiscal fourth-quarter performance is likely to have benefited from the expansion of its Norton 360 memberships to more countries in the EMEA, Asia Pacific and Latin American regions, in a bid to offer a broader range of cyber safety products.
Apart from these, strong client retention and renewal rates are anticipated to have aided its fiscal fourth-quarter top-line growth. At the end of the fiscal third quarter, NortonLifeLock’s client-retention rate was 85%. The Norton antivirus maker’s sustained focus on growing partner channel and employee benefit programs is likely to have boosted its performance during the quarter under review.
What Our Model Says
Our proven model does not predict an earnings beat for NortonLifeLock this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
NortonLifeLock currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Ralph Lauren Corporation RL has an Earnings ESP of +6.25% and currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Walt Disney Company DIS has an Earnings ESP of +46.11% and carries a Zacks Rank #3, at present.
Rackspace Technology, Inc. RXT has an Earnings ESP of +4.55% and currently carries a Zacks Rank #3.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
NortonLifeLock Inc. (NLOK) : Free Stock Analysis Report
Rackspace Technology, Inc. (RXT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research