U.S. markets closed
  • S&P 500

    4,185.47
    +15.05 (+0.36%)
     
  • Dow 30

    34,200.67
    +164.68 (+0.48%)
     
  • Nasdaq

    14,052.34
    +13.58 (+0.10%)
     
  • Russell 2000

    2,262.67
    +5.60 (+0.25%)
     
  • Crude Oil

    63.07
    -0.39 (-0.61%)
     
  • Gold

    1,777.30
    +10.50 (+0.59%)
     
  • Silver

    26.04
    +0.08 (+0.29%)
     
  • EUR/USD

    1.1980
    +0.0004 (+0.04%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • GBP/USD

    1.3842
    +0.0058 (+0.42%)
     
  • USD/JPY

    108.7900
    +0.0740 (+0.07%)
     
  • BTC-USD

    61,494.29
    +552.40 (+0.91%)
     
  • CMC Crypto 200

    1,398.97
    +7.26 (+0.52%)
     
  • FTSE 100

    7,019.53
    +36.03 (+0.52%)
     
  • Nikkei 225

    29,683.37
    +40.68 (+0.14%)
     

NortonLifeLock (NLOK) to Report Q3 Earnings: What's in Store?

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

NortonLifeLock NLOK is scheduled to release third-quarter fiscal 2021 results on Feb 4.

The company projects quarterly revenues between $625 million and $635 million. The Zacks Consensus Estimate for revenues is pegged at $630.2 million, calling for a year-over-year decrease of 2.9%.

The company projects non-GAAP earnings from continuing operations between 36 cents and 38 cents per share. The Zacks Consensus Estimate is pegged at 37 cents per share, suggesting a whopping 48% year-over-year jump.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 76.5%.

NortonLifeLock Inc. Price and EPS Surprise

NortonLifeLock Inc. Price and EPS Surprise
NortonLifeLock Inc. Price and EPS Surprise

NortonLifeLock Inc. price-eps-surprise | NortonLifeLock Inc. Quote

Let’s see how things have shaped up prior to the upcoming announcement.

Factors at Play

NortonLifeLock’s fiscal third-quarter results are likely to reflect benefits from increased demand for cybersecurity and ID analytics solutions amid the COVID-19 pandemic-led work-from-home and online-learning wave.

Notably, a huge global workforce has been working remotely in order to contain the spread of the COVID-19 pandemic. 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 third quarter.

Moreover, the fiscal third-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 third-quarter top-line performance. At the end of the fiscal second quarter, NortonLifeLock’s client-retention rate was 85%. The Norton antivirus maker’s sustained focus on growing partner channel and employee benefit programs is expected to have boosted its performance during the quarter under review.

Nonetheless, NortonLifeLock’s quarterly results will likely reflect the negative impact of revenue losses due to the divestment of the company’s enterprise security asset to Broadcom (AVGO) and ID Analytics business to LexisNexis Risk Solutions, part of RELX Plc (RELX).

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:

CDW Corporation CDW has an Earnings ESP of +6.74% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Materials, Inc. AMAT has an Earnings ESP of +2.54% and holds a Zacks Rank of 3 currently.

Equifax, Inc. EFX has an Earnings ESP of +1.44% and carries a Zacks Rank #3, at present.

Zacks Names “Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


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

Equifax, Inc. (EFX) : Free Stock Analysis Report

Applied Materials, Inc. (AMAT) : Free Stock Analysis Report

CDW Corporation (CDW) : Free Stock Analysis Report

NortonLifeLock Inc. (NLOK) : Free Stock Analysis Report

To read this article on Zacks.com click here.