NortonLifeLock
NLOK
is scheduled to report second-quarter fiscal 2022 results on Nov 4.
The company projects quarterly revenues between $690 million and $700 million. The Zacks Consensus Estimate for revenues is pegged at $661 million, suggesting year-over-year growth of 3%.
For the first quarter of fiscal 2022, the company expects non-GAAP earnings from continuing operations in the range of 41 cents and 43 cents per share. The Zacks Consensus Estimate is pegged at 42 cents per share, indicating an improvement of 16.7% 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%.
Let’s see how things have shaped up for the upcoming announcement.
NortonLifeLock Inc. Price and EPS Surprise
NortonLifeLock Inc. price-eps-surprise
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NortonLifeLock Inc. Quote
Factors to Consider
NortonLifeLock’s fiscal second-quarter results are likely to reflect benefits from the 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 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 third quarter.
Moreover, the fiscal second-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 contributed to its fiscal second-quarter top line. NortonLifeLock’s client retention rate was 85% in the first quarter.
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 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 release:
HP
HPQ
has an Earnings ESP of +1.89% and currently sports a Zacks Rank of 1. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Applied Materials
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has an Earnings ESP of +0.52% and holds a Zacks Rank of 2, currently.
QUALCOMM
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has an Earnings ESP of +0.35% and carries a Zacks Rank #3, at present.
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