NortonLifeLock reported first-quarter fiscal 2021 non-GAAP earnings of 31 cents per share that climbed 48% year over year. The figure also beat the Zacks Consensus Estimate of 21 cents. This outperformance was driven by strong execution and lower stranded costs.
Revenues grew 4% year over year to $614 million and beat the consensus mark of $598.4 million as well as.
Quarter Details
Direct average revenue per user (ARPU) increased 2.3% year over year to $9.03. Continued stabilization of direct customer count was a positive.
In the fiscal first quarter, gross profit decreased 4.7% year over year to $528 million. However, gross margin expanded 80 basis points (bps) on a year-over-year basis to 86%.
Operating income on a non-GAAP basis jumped 39.6% year over year to $289 million. Operating margin was 47.1%, up significantly from the year-ago quarter’s 31.8%.
Balance Sheet
As of Jul 3, 2020, NortonLifeLock had $1.1 billion in cash and cash equivalents compared with the prior quarter’s $2.3 billion. Long-term debt was $2.84 billion, down from the $3.47 billion witnessed in the previous quarter.
Notably, cash from from operations was $170 million.
Guidance
For the second quarter of fiscal 2021, NortonLifeLock projects revenues between $615 million and $625 million, suggesting 3-5% growth adjusting for ID Analytics revenues ($13 million).
Moreover, non-GAAP earnings from continuing operations are expected between 31 cents and 35 cents per share.
Zacks Rank and Other Key Picks
Currently, NortonLifeLock carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector include Benefitfocus , Cogent Communications Holdings (CCOI - Free Report) and Synaptics (SYNA - Free Report) , all carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Benefitfocus, Cogent and Synaptics is currently pegged at 30%, 10.6%, and 10%, respectively.
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NortonLifeLock reported first-quarter fiscal 2021 non-GAAP earnings of 31 cents per share that climbed 48% year over year. The figure also beat the Zacks Consensus Estimate of 21 cents. This outperformance was driven by strong execution and lower stranded costs.
Revenues grew 4% year over year to $614 million and beat the consensus mark of $598.4 million as well as.
Quarter Details
Direct average revenue per user (ARPU) increased 2.3% year over year to $9.03. Continued stabilization of direct customer count was a positive.
In the fiscal first quarter, gross profit decreased 4.7% year over year to $528 million. However, gross margin expanded 80 basis points (bps) on a year-over-year basis to 86%.
Operating income on a non-GAAP basis jumped 39.6% year over year to $289 million. Operating margin was 47.1%, up significantly from the year-ago quarter’s 31.8%.
Balance Sheet
As of Jul 3, 2020, NortonLifeLock had $1.1 billion in cash and cash equivalents compared with the prior quarter’s $2.3 billion. Long-term debt was $2.84 billion, down from the $3.47 billion witnessed in the previous quarter.
Notably, cash from from operations was $170 million.
Guidance
For the second quarter of fiscal 2021, NortonLifeLock projects revenues between $615 million and $625 million, suggesting 3-5% growth adjusting for ID Analytics revenues ($13 million).
Moreover, non-GAAP earnings from continuing operations are expected between 31 cents and 35 cents per share.
Zacks Rank and Other Key Picks
Currently, NortonLifeLock carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector include Benefitfocus , Cogent Communications Holdings (CCOI - Free Report) and Synaptics (SYNA - Free Report) , all carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Benefitfocus, Cogent and Synaptics is currently pegged at 30%, 10.6%, and 10%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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 Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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