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Why This Analyst Likes NortonLifeLock Stock

Here's what you need to know about NortonLifeLock's earnings.

Let's take a look at NortonLifeLock's earnings. 

The company reported net revenue of $614 million (+4% YoY) exceeded estimates of $600 million, and adjusted earnings per share of $0.31 (+48%) greatly exceeded estimates of $0.22.

"In our first quarter, we drove better than expected results on the top and bottom lines. We demonstrated great progress towards our goal to deliver sustained mid-single digit growth, with reported billings up 9% and customer count growing year-over-year for the first time in over 5 years," CEO Vincent Pilette said in the press release.

"We are off to a strong start this year and I'm even more excited about our vision to keep people around the world Cyber Safe. We believe it is our responsibility to provide everyone with innovative products and solutions to protect and control their digital lives."

"Helping drive the bottom line eat was a 15 percentage point YoY improvement to operating margins, which at 47% was much higher than estimates of 36% and includes approximately $30 million in stranded costs. The business is running at a 51% operating margin, if you exclude the stranded costs," wrote Jim Cramer's Action Alerts PLUS team, which has a position in the stock.

So, what makes NortonLifeLock a buy in the portfolio's eyes?

Jeff Marks, senior portfolio analyst for Jim Cramer's Action Alerts Plus charitable portfolio, explains.

You can follow Katherine Ross on Twitter at @byKatherineRoss.

Read more from Katherine Ross here.

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