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Market Overview

NortonLifeLock Earnings Preview

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On Thursday, February 04, NortonLifeLock (NASDAQ:NLOK) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see NortonLifeLock reporting earnings of $0.37 per share on sales of $630.53 million. In the same quarter last year, NortonLifeLock reported EPS of $0.25 on revenue of $618.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 48.0%. Revenue would be up 2.03% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2020
EPS Estimate 0.33 0.22 0.19 0.08
EPS Actual 0.36 0.31 0.26 0.25
Revenue Estimate 620.35 M 599.67 M 601.30 M 607.72 M
Revenue Actual 626.00 M 614.00 M 614.00 M 618.00 M

Stock Performance

Shares of NortonLifeLock were trading at $21.86 as of February 02. Over the last 52-week period, shares are up 22.83%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. NortonLifeLock is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings