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What's in the Cards for NortonLifeLock's (NLOK) Q1 Earnings?

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NortonLifeLock NLOK is scheduled to report first-quarter fiscal 2022 results on Jul 27.

The company is projecting quarterly revenues between $680 million and $690 million. The Zacks Consensus Estimate for revenues is pegged at $665 million, suggesting year-over-year growth of 8.3%.

For the first quarter of fiscal 2022, the company is expecting non-GAAP earnings from continuing operations in the range of 40 cents and 42 cents per share. The Zacks Consensus Estimate is pegged at 41 cents per share, indicating an improvement of 32.26% from the year-ago reported figure.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.9%.

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

Factors to Note

NortonLifeLock’s first-quarter performance is likely to have benefited from the expansion of its Norton 360 memberships, which offers a broader range of cyber safety products, to more countries in the EMEA, Asia Pacific and Latin American regions.

Increased demand for cybersecurity and ID analytics solutions amid the COVID-19 pandemic-induced work-from-home and online-learning wave might have favored the to-be-reported quarter’s performance.

A huge portion of global workforce has been working remotely in order to contain the spread of the virus. This led to more people logging into employers' networks, which increased the need for greater security. This trend is likely to have spurred demand for the company’s products during the fiscal fourth quarter.

Apart from these, strong client retention and renewal rates are anticipated to have contributed to its fiscal first-quarter top line. At the end of the fiscal fourth 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 conclusively 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 has a Zacks Rank of 3 and 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:

Avnet, Inc. AVT has an Earnings ESP of +0.66% and a Zacks Rank of 1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple Inc. AAPL has an Earnings ESP of +3.40% and a Zacks Rank #2, at present.

Facebook FB has an Earnings ESP of +7.52% and a Zacks Rank of 3 currently.

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Apple Inc. (AAPL) : Free Stock Analysis Report

Avnet, Inc. (AVT) : Free Stock Analysis Report

Facebook, Inc. (FB) : Free Stock Analysis Report

NortonLifeLock Inc. (NLOK) : Free Stock Analysis Report

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