Shares of Gen Digital, the software firm formerly known as NortonLifeLock (NASDAQ:GEN) and headquartered in Tempe, Arizona, rallied by 9.7% to $19.16 on Tuesday following the release of its second-quarter results. The results outperformed analyst forecasts compiled by FactSet, despite a year-to-date decline of 13% in the company's stock value.
In Q2, Gen Digital reported a profit of $149 million or 23 cents per share. This marks a significant increase from last year's Q2 figures which stood at $69 million or 12 cents per share. Adjusted earnings, excluding one-time items, met consensus estimates at 47 cents per share. The company also recorded a revenue of $948 million, reflecting a year-over-year increase of $200 million.
In light of these results, Gen Digital has revised its full-year guidance for 2023. The company now expects earnings to range between $1.95 to $2 per share and anticipates revenue to lie between $3.81 billion and $3.835 billion. This represents a slight narrowing from previous estimates provided by the company.
InvestingPro Insights
In addition to the positive performance reported by Gen Digital, InvestingPro data and tips offer further insights into the company's potential.
InvestingPro data reveals that Gen Digital has a market capitalization of 12.23B USD and a low P/E Ratio of 8.97, which is even lower when adjusted for the last twelve months as of Q1 2024, standing at 7.45. This suggests that the stock may be undervalued relative to its earnings potential. The company also reported impressive revenue growth of 26.98% and a high gross profit margin of 81.38% in the same period.
InvestingPro tips highlight that Gen Digital's management has been aggressively buying back shares, which can often be seen as a sign of confidence in the company's future. Moreover, the company's revenue growth has been accelerating, further supporting the positive outlook.
These insights, coupled with the fact that Gen Digital operates with a high return on assets and has maintained dividend payments for 11 consecutive years, make it a potentially attractive option for investors.
For more detailed tips and real-time data, consider exploring the InvestingPro platform, which offers a wealth of information to help guide your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.