Shares in Gen, previously NortonLifeLock, rise on solid earnings report

Shares in Gen, previously NortonLifeLock, rise on solid earnings report

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Shares in Gen Digital Inc., the company previously known as NortonLifeLock Inc., rose in after-hours trading after the newly renamed company reported solid earnings results for its fiscal 2023 second quarter.

For the quarter that ended Sept. 30, Gen reported diluted earnings per share of 45 cents, up 5% year-over-year, on revenue of $748 million, up 8%. Analysts had been expecting 43 cents and $699.7 million.

Bookings in the quarter came in at $719 million, up 6% year-over-year, while Gen’s operating income rose 7%, to $388 million.

The solid figures were overshadowed by the name change, which led the media release from the newly renamed company. Gen combines “trusted names” in cyber safety — Norton, Avast, LifeLock, Avira, AVG, ReputationDefender and CCleaner — under a new name, which Chief Executive Officer Vincent Pilette describes as the “next chapter for our company and its expanded purpose to power Digital Freedom.”

Gen, previously known as NortonLifeLock, was also previously known as Symantec until November 2019. The first name change came following Broadcom Inc.’s acquisition of then Symantec Corp.’s enterprise security business in August 2019. Gen/NortonLifeLock was the consumer product portfolio side of the original Symantec business. The original Norton Internet Security offering was debuted by Symantec in January 2000 and became a well-known consumer antivirus brand alongside the likes of McAfee.

Listed in the consumer brands under the Gen name is Avast, which NortonLifeLock announced it had entered an agreement to acquire in August 2021. The takeover was subject to scrutiny, with the acquisition put on temporary hold in March after competition concerns by the U.K. Competition and Markets Authority. In August, the deal was given the green light to proceed and then finally closed in September.

For the quarter ahead, Gen is predicting earnings of 42 to 45 cents a share on revenue of $925 million to $940 million.

Investors liked the numbers, sending Gen Digital’s share price up about 5% in after-hours trading.

Image: Gen Digital

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