Please ensure Javascript is enabled for purposes of website accessibility

Why NortonLifeLock Stock Jumped Today

By Chris Neiger - May 11, 2021 at 3:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were happy to see the company beat Wall Street's expectations for the quarter.

What happened 

Shares of NortonLifeLock (NLOK 0.58%) spiked today after the company reported better-than-expected fourth-quarter results late yesterday. 

The tech stock was up by 10.2% as of 3:41 p.m. EDT.

So what 

NortonLifeLock reported fourth-quarter non-GAAP diluted earnings of $0.40 per share, which surpassed Wall Street's consensus estimate of $0.38 per share. Additionally, the company's fourth-quarter revenue of $672 million beat analysts' consensus estimate of $660 million.

Multicolored arrows pointing up.

Image source: Getty Images.

"In the fourth quarter alone, we added 2 million new customers, and achieved record revenue and profit," NortonLifeLock CEO Vincent Pilette said in a press release.

In addition to the company's sales and earnings beats, investors were also happy to see that NortonLifeLock's board approved a share repurchase program of $1.5 billion. The new buyback program adds the current $274 million in repurchases that's already under way. 

Two other highlights from the quarter include the company's consumer reported billings increasing 17% year over year, to $748 million, and an addition of 2.8 million new customers. The company ended the quarter with a total of 23 million customers. 

Now what 

NortonLifeLock's management issued guidance for its first quarter, saying that revenue would be in the range of $680 million to $690 million, up 11% year over year at the midpoint of guidance. The company also expects non-GAAP earnings to be in the range of $0.40 to $0.42, up from $0.31 per share in the year-ago quarter.

With the company's strong fourth-quarter results and management's optimistic outlook for the first quarter, it's no surprise NortonLifeLock's stock is climbing today.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NortonLifeLock Inc. Stock Quote
NortonLifeLock Inc.
NLOK
$24.19 (0.58%) $0.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.