Gen Digital Inc. Prepares for Q4 Earnings Announcement on May 6

Gen Digital Inc. (GEN), with a market cap of $14.7 billion, is a prominent player in the global cybersecurity sector. The company, headquartered in Tempe, Arizona, and Prague, Czech Republic, specializes in providing a variety of consumer-focused products and services designed to enhance online safety, privacy, identity protection, and financial wellness.

Fiscal Q4 Earnings Expectations

GEN is set to release its fiscal Q4 earnings results after the market closes on Tuesday, May 6. Analysts anticipate the software company will report a profit of $0.54 per share, representing a 12.5% increase compared to $0.48 per share in the same quarter last year. Notably, the company has exceeded or matched Wall Street’s earnings estimates in three out of the last four quarters, with only one reporting miss.

Future Earnings Projections

Looking ahead, analysts predict that GEN will achieve an earnings per share (EPS) of $2.06 in fiscal 2025, which marks a 14.4% increase from $1.80 in fiscal 2024.

Stock Performance and Market Position

Over the past 52 weeks, GEN’s shares have increased by 22.9%, surpassing the S&P 500 Index’s ($SPX) 9.4% gain and the Technology Select Sector SPDR Fund’s (XLK) 5.5% return during the same period.

Despite a strong performance in its third-quarter results on January 30, where Gen Digital reported a 4% revenue increase to $986 million—slightly exceeding analyst forecasts—its shares fell by 3.5% in the following trading session. The adjusted EPS rose 14.3% to $0.56, driven by growth in direct customer revenues, which rose to $869 million from $834 million. The direct customer base expanded to 40.1 million, resulting in an average revenue per user (ARPU) of $7.27.

Analyst Outlook

Wall Street analysts remain optimistic about Gen Digital, assigning an overall “Moderate Buy” rating. Out of seven analysts tracking the stock, four recommend a “Strong Buy,” while three suggest holding.

The average price target for GEN is set at $32, indicating a potential upside of 26.7% from current market levels.

On the date of publication, Kritika Sarmah did not have positions in any of the securities mentioned in this article. All data and information herein are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy
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