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NortonLifeLock (NLOK) to Post Q4 Earnings: What's in Store?
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NortonLifeLock, Inc. is set to report fourth-quarter fiscal 2020 results on May 14.
For the quarter, the company anticipates revenues between $595 million and $605 million. The Zacks Consensus Estimate for revenues is pegged at $602.2 million, indicating a year-over-year decline of 49.6%.
Non-GAAP earnings from continuing operations are expected between 15 cents and 20 cents per share. The Zacks Consensus Estimate is pegged at 19 cents per share, suggesting a 51.3% year-over-year decline.
The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched in the remaining one, the average positive surprise being 47.44%.
Let’s see how things are shaping up for the upcoming announcement.
For the fourth quarter of fiscal 2020, NortonLifeLock is expected to have expanded Norton 360 memberships to more countries in the EMEA, Asia Pacific and Latin American regions to offer a broader range of cyber safety products.
Moreover, in an effort to contain the coronavirus's spread, a huge global workforce is working remotely. But more people logging into employers' networks means a greater need for security. This trend is likely to have positively impacted demand for the company’s products in the fourth quarter.
Besides, per management’s expectation, bookings are likely to have grown in a low-single-digit rate on a year-over-year basis.
However, a tax liability of approximately $2.2 billion on the sale of the Enterprise segment has likely been paid in the fourth quarter, denting the cash flow from operations.
Also, the ID Analytics business was sold to LexisNexis Risk Solutions in January this year. Therefore, the company is likely to have seen no revenues from this unit during the fiscal fourth quarter.
What Our Model Says
The proven Zacks model does not conclusively predict an earnings beat for NortonLifeLock this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. 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 has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are a few stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank of 2.
Cisco Systems Inc. (CSCO - Free Report) has an Earnings ESP of +6.29% and a Zacks Rank #3.
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 +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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NortonLifeLock (NLOK) to Post Q4 Earnings: What's in Store?
NortonLifeLock, Inc. is set to report fourth-quarter fiscal 2020 results on May 14.
For the quarter, the company anticipates revenues between $595 million and $605 million. The Zacks Consensus Estimate for revenues is pegged at $602.2 million, indicating a year-over-year decline of 49.6%.
Non-GAAP earnings from continuing operations are expected between 15 cents and 20 cents per share. The Zacks Consensus Estimate is pegged at 19 cents per share, suggesting a 51.3% year-over-year decline.
The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched in the remaining one, the average positive surprise being 47.44%.
Let’s see how things are shaping up for the upcoming announcement.
NortonLifeLock Inc Price and EPS Surprise
NortonLifeLock Inc price-eps-surprise | NortonLifeLock Inc Quote
Factors at Play
For the fourth quarter of fiscal 2020, NortonLifeLock is expected to have expanded Norton 360 memberships to more countries in the EMEA, Asia Pacific and Latin American regions to offer a broader range of cyber safety products.
Moreover, in an effort to contain the coronavirus's spread, a huge global workforce is working remotely. But more people logging into employers' networks means a greater need for security. This trend is likely to have positively impacted demand for the company’s products in the fourth quarter.
Besides, per management’s expectation, bookings are likely to have grown in a low-single-digit rate on a year-over-year basis.
However, a tax liability of approximately $2.2 billion on the sale of the Enterprise segment has likely been paid in the fourth quarter, denting the cash flow from operations.
Also, the ID Analytics business was sold to LexisNexis Risk Solutions in January this year. Therefore, the company is likely to have seen no revenues from this unit during the fiscal fourth quarter.
What Our Model Says
The proven Zacks model does not conclusively predict an earnings beat for NortonLifeLock this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. 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 has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are a few stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Adamas Pharmaceuticals Inc. has an Earnings ESP of +29.53% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank of 2.
Cisco Systems Inc. (CSCO - Free Report) has an Earnings ESP of +6.29% and a Zacks Rank #3.
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 +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>