NortonLifeLock (NLOK) to Post Q1 Earnings: What's to Expect?

NortonLifeLock, Inc. NLOK is set to report first-quarter fiscal 2021 results on Aug 6.

The company anticipates quarterly revenues between $590 million and $605 million. The Zacks Consensus Estimate for revenues is pegged at $598.8 million, indicating a year-over-year plunge of 52.1%.

The company projects non-GAAP earnings from continuing operations between 18 cents and 22 cents per share. The Zacks Consensus Estimate is pegged at 21 cents per share, suggesting a 51.2% year-over-year decline.

The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average surprise being 56.7%.

Let’s see how things have shaped up for the upcoming announcement.

NortonLifeLock Inc. Price and Consensus

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

Key Factors

Massive year-over-year decline expectations reflect revenue loss due to the divestment of the company’s enterprise security asset to Broadcom AVGO and ID Analytics business to LexisNexis Risk Solutions, part of RELX Plc RELX.

Otherwise, NortonLifeLock’s fiscal first-quarter performance is anticipated to have benefited from the expansion of its Norton 360 memberships to more countries in the EMEA, Asia Pacific and Latin American regions, in a bid to offer a broader range of cyber safety products.

Moreover, a huge global workforce has been working remotely in order to contain the spread of coronavirus. However, more people logging into employers' networks requires greater security. This trend is likely to have spurred demand for the company’s products during the fiscal first quarter.

What Our Model Says

Our proven model predicts an earnings beat for NortonLifeLock this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

NortonLifeLock currently carries a Zacks Rank of 2 and has an Earnings ESP of +2.67%.

Other Stocks With Favorable Combinations

Here are some other companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Cogent Communications Holdings CCOI has an Earnings ESP of +11.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics SYNA has an Earnings ESP of +10.6 % and currently carries a Zacks Rank of 2.

Benefitfocus BNFT has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.

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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.