NortonLifeLock (NLOK) - Get Report shares rose in after-hours trading Monday, after the consumer cybersecurity titan beat earnings expectations for the fiscal 2021 fourth quarter, and announced a $1.5 billion boost to its share buyback plan.
Norton reported revenue of $672 million in the quarter, up 9% from $614 million last year. The FactSet analyst consensus called for $660.2 million in the latest quarter.
Profit registered $194 million, or 33 cents a share, in the quarter, down from $231 million, or 36 cents a year earlier. Analysts anticipated 30 cents for the latest quarter.
Adjusted earnings per share totaled 40 cents in the quarter, beating the analyst consensus of 38 cents.
Norton recently stood at $21.79, up 3.37% in after-hours trading.
The company forecasted first fiscal quarter revenue will be $680 million to $690 million, with non-GAAP EPS of 40 cents to 42 cents. It also said it is boosting its share buyback plan by $1.5 billion.
"I’m proud of what the team achieved in our first fiscal year," said Vincent Pilette, CEO of NortonLifeLock, in a statement. "We accelerated growth, expanded our international footprint, and added freemium capability. In the fourth quarter alone, we added 2 million new customers."
Last month, Bank of America initiated coverage of Norton with an underperform rating and a $19 price target.
“We favor NortonLifeLock’s focus on consumer security and believe the tuck-in acquisitions add new growth avenues in the long run,” BofA analyst Tai Liani wrote in a commentary.
“However, once we isolate M&A impact, core Symantec (58% of revenues) is not growing, which is a reflection of weak consumer channels the company will have to improve,” Liani added.
Further, “last year’s COVID-related spike in demand may unwind in the next few quarters, and the company may return to negative trends in churn and subscriber additions, negatively impacting the revenue growth,” Liani said.
Norton was included in TheStreet.com founder James Cramer's 10 investment themes at the beginning of 2021.