Gen Digital GEN is slated to report second-quarter fiscal 2025 results after market close on Oct. 30.
GEN expects fiscal second-quarter non-GAAP revenues in the range of $965-$975 million. The Zacks Consensus Estimate for revenues is pegged at $968.5 million, indicating 1.4% year-over-year growth.
For the fiscal second quarter, Gen Digital expects non-GAAP earnings in the range of 53-55 cents per share. The consensus mark for the same is pegged at 54 cents per share, unchanged for the past 60 days, suggesting a year-over-year rise of 14.9%.
In the trailing four quarters, GEN’s earnings beat the Zacks Consensus Estimate once, missed once, and matched twice, with the negative average surprise being 0.02%.
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 to Consider for GEN
Gen Digital’s second-quarter fiscal 2025 performance is likely to have benefited from the rise in the demand for cybersecurity-related products due to the immense increase in global hacking events. The company’s sustained focus on offering products that meet the consumer needs for security, identity and privacy is helping it win new clients.
The recent launch of Norton Ultra VPN offering extensive online protection, with dark web monitoring, VPN protocol support, worldwide content access and seamless customer experience might have benefited its sales in the quarter to be reported.
Our second-quarter estimate for Gen Digital’s Consumer Security segment’s revenues is pegged at $620 million, indicating a year-over-year increase of 2.7%. Our estimate of $339 million for the Identity and Information Protection division implies growth of 3.4% 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. The growing number of client bookings, supported by strong retention, international expansion and strategic partnerships is likely to have aided top-line growth in the fiscal second quarter.
Nevertheless, GEN’s fiscal second-quarter performance is likely to have been hurt by softening IT spending. Still-high interest rates and protracted inflationary conditions are expected to have hurt consumer spending. Meanwhile, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
GEN has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.
TransUnion TRU has an Earnings ESP of +1.44% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TransUnion shares have surged 50.7% year to date. It is slated to report its fourth-quarter fiscal 2024 results on Feb. 11, 2025.
The Zacks Consensus Estimate for TRU’s fourth-quarter fiscal 2024 earnings is pegged at 97 cents per share, unchanged over the past 60 days. This suggests an improvement of 21.3% from the year-ago quarter’s reported figure.
Cantaloupe CTLP has an Earnings ESP of +25.00% and a Zacks Rank #2 at present.
CTLP shares have gained 20.1% year to date. It is slated to release first-quarter fiscal 2025 results on Nov. 7.
The Zacks Consensus Estimate for CTLP’s earnings is pegged at 4 cents per share, down by a penny over the past 30 days. This indicates growth of 100% from the year-ago quarter’s reported figure.
Trane Technologies TT has an Earnings ESP of +1.17% and a Zacks Rank #2 at present. TT’s shares have gained 60.9% year to date. It is set to report third-quarter 2024 results on Oct. 30.
The Zacks Consensus Estimate for TT’s third-quarter 2024 earnings is pegged at $3.23 per share, up by a penny for the past 60 days, indicating an improvement of 15.8% from the year-ago quarter’s reported figure.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
