Gen Digital Inc. Set to Release Q4 Fiscal 2025 Results
Gen Digital Inc. (GEN) will report its fourth-quarter fiscal 2025 results on May 6, after market close. For this quarter, GEN projects non-GAAP revenues between $990 million and $1,005 million. The Zacks Consensus Estimate for revenues stands at $998 million, reflecting a year-over-year growth of 3.2%.
Expected Earnings and Performance History
In terms of earnings, Gen Digital anticipates a non-GAAP range of 57-59 cents per share. The consensus mark is set at 58 cents per share, indicating a 9.4% increase year-over-year. Notably, this estimate has remained unchanged over the past 60 days.
Historically, GEN has outperformed the Zacks Consensus Estimate in two of the last four quarters, while meeting expectations in the others. The average surprise has been 0.94%.
Factors Influencing Q4 Results
Several factors may have positively influenced Gen Digital’s performance in Q4 fiscal 2025. A significant increase in demand for cybersecurity products, driven by a surge in global hacking incidents, has positioned the company favorably. Additionally, Gen Digital’s focus on innovative solutions catering to security, identity, and privacy has helped attract new clients. In Q3, the company reported an impressive increase of 400,000 in its average direct paying customer count, reaching 40.1 million.
The introduction of Norton Small Business Premium, which offers comprehensive cybersecurity solutions along with 24/7 tech support and financial monitoring, likely contributed to sales growth in the quarter. Revenues for the Consumer Security segment are estimated at $632.9 million, a 1.9% year-over-year increase. The Identity and Information Protection division is projected to generate revenues of $354 million, representing a 4.1% growth compared to the previous year.
Strong demand for services like identity theft protection and dark web monitoring is expected to support sales. An increase in client bookings, coupled with strong retention rates, international growth, and strategic partnerships, has likely bolstered top-line results.
However, GEN may face challenges from declining IT spending. Persistently high interest rates and ongoing inflation could affect consumer spending. Many enterprises are postponing significant IT investments due to a sluggish global economy, exacerbated by macroeconomic and geopolitical uncertainties.
Current Earnings Whispers
At this point, our model does not definitively predict an earnings beat for Gen Digital. For a positive earnings surprise, a combination of a favorable earnings ESP and Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) is critical. Currently, Gen Digital holds an earnings ESP of -1.16% and a Zacks Rank of #4 (Sell).
Stocks with Favorable Earnings Outlook
According to our model, the following companies are positioned well for potential earnings beats: BILL Holdings (BILL), Fortinet (FTNT), and Advanced Micro Devices (AMD).
BILL Holdings has an earnings ESP of +0.30% and a Zacks Rank #3. It is scheduled to report its third-quarter fiscal 2025 results on May 8, with a consensus estimate of 37 cents per share, representing a year-over-year decline of 38.3%. Notably, shares have dropped 28% over the past year.
Fortinet is set to announce its first-quarter 2025 results on May 7. Currently, it possesses an earnings ESP of +3.77% and a Zacks Rank #3. The consensus estimate for first-quarter earnings is 53 cents per share, indicating a year-over-year increase of 23.3%. Fortinet shares have gained 59.1% over the past year.
Advanced Micro Devices is also reporting its first-quarter 2025 results on May 6 and holds an earnings ESP of +0.74% with a Zacks Rank #3. The consensus estimate for its earnings is 93 cents per share, reflecting a 50% increase from the previous year. Its shares have declined 33.4% in the past year.
