Back to top

Image: Bigstock

NortonLifeLock (NLOK) Q4 Earnings Beat Estimates, Rise Y/Y

Read MoreHide Full Article

NortonLifeLock’s (NLOK - Free Report) fourth-quarter fiscal 2021 non-GAAP earnings increased 54% from the year-ago quarter to 40 cents per share. Also, the bottom line beat the Zacks Consensus Estimate of 37 cents.

Revenues of $677 million surpassed the consensus mark of $658 million and rose 11% year over year. This outperformance was mainly driven by impressive customer growth.

NortonLifeLock Inc. Price, Consensus and EPS Surprise

NortonLifeLock Inc. Price, Consensus and EPS Surprise

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

Quarter Details

Direct average revenue per user (ARPU) decreased 3% year over year to $9.10 per month. Continued stabilization of direct customer count was a positive.

The company’s direct customer count increased 2 million year over year during the fiscal fourth quarter, bringing the total count to 23 million.

In the reported quarter, gross profit climbed 10.8% year over year to $573 million. Moreover, gross margin expanded 110 basis points (bps) to 85.3%.

Operating income on a non-GAAP basis jumped 34% year over year to $342 million. Operating margin was 50.5%, up 900 bps.

Balance Sheet

As of Apr 2, 2021, NortonLifeLock had $933 million in cash and cash equivalents, down sequentially from $1.05 billion. Long-term debt was $3.29 billion, down slightly from the $3.54 billion witnessed in the previous quarter.

Net cash of $356 million was provided by operating activities in the fiscal fourth quarter, as compared to $293 million of cash used in operational activities in the previous quarter.

Notably, the company authorized a quarterly cash dividend of $0.125 per share, payable on Jun 23 to all shareholders of record as of Jun 09.

Moreover, an additional share repurchase of $1.5 billion was authorized by the company, along with the remaining $274 million remaining in the current authorization, increasing the total share repurchase remaining to approximately $1.8 billion.

Full-Year Highlights

For full-year fiscal 2021, revenues came in at $2.55 billion, up 2.4% year over year. Non-GAAP earnings of $1.44 per share grew 60% year over year.

Guidance

For the first quarter of fiscal 2022, NortonLifeLock expects revenues between $680 million and $690 million. Non-GAAP earnings are expected between 40 cents and 42 cents per share.

For fiscal 2022, the company projects 8-10% year-over-year growth.

Moreover, non-GAAP earnings from continuing operations are expected between $1.65 and $1.75 per share.

Zacks Rank and Stocks to Consider

NortonLifeLock currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Apple Inc. (AAPL - Free Report) , Zoom Video Communications (ZM - Free Report) and Shopify (SHOP - Free Report) , all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Apple, Zoom Video Communications and Shopify is currently pegged at 11.5%, 25% and 32.5%, respectively.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>