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Gen Digital Inc. GEN is scheduled to report fourth-quarter fiscal 2025 results on May 6, after market close.
GEN expects non-GAAP revenues of $990-$1,005 million for the quarter. The Zacks Consensus Estimate for revenues is pegged at $998 million, indicating 3.2% year-over-year growth.
For the fiscal fourth quarter, Gen Digital expects non-GAAP earnings to be in the range of 57-59 cents per share. The consensus mark for the same is pegged at 58 cents per share, suggesting a year-over-year rise of 9.4%. The estimate remained unchanged for the past 60 days.
GEN’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and met in the others, the average surprise being 0.94%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Gen Digital Inc. Price and EPS Surprise
Gen Digital Inc. price-eps-surprise | Gen Digital Inc. Quote
Factors Likely to Influence GEN’s Q4 Results
Gen Digital’s fourth-quarter fiscal 2025 performance is likely to have benefited from the rise in the demand for cybersecurity-related products, driven by a massive increase in global hacking events. Its persistent effort to offer innovative solutions that meet the consumer needs for security, identity and privacy is enabling the company to gain new clients. In the third quarter, Gen Digital’s average direct paying customer count increased 400,000 to an impressive 40.1 million.
The launch of Norton Small Business Premium, a comprehensive cybersecurity solution with 24/7 tech support, financial monitoring and social media monitoring, is likely to have boosted sales in the to-be-reported quarter. Our fourth-quarter estimate for Gen Digital’s Consumer Security segment’s revenues is pegged at $632.9 million, indicating a year-over-year increase of 1.9%. Our estimate of $354 million for the Identity and Information Protection division implies growth of 4.1% from the year-ago quarter.
Robust demand for identity theft protection solutions, dark web monitoring, social media monitoring, stolen wallet assistant and ID restoration is expected to have been positive for the quarter under review. An increase in client bookings, supported by strong retention, international expansion and strategic partnerships, is likely to have aided top-line growth in the fiscal fourth quarter.
Nonetheless, GEN’s fiscal fourth-quarter performance is likely to have been impacted by the decline in IT spending. The combination of persistently high interest rates and continuing inflation is expected to have affected consumer spending. Additionally, enterprises are deferring their substantial IT investments due to a faltering global economy, which is compounded by ongoing macroeconomic and geopolitical challenges.