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Why NortonLifeLock Stock Jumped Today

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

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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.

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