Gen Digital (NASDAQ:GEN) Issues FY 2027 Earnings Guidance

Key Points

• Gen Digital issued FY2027 guidance of EPS $2.850–2.950 (vs. consensus $2.820) and revenue $5.3B–$5.4B (vs. consensus $5.2B), and updated Q1 2027 EPS guidance to $0.680–$0.700.
• The company slightly beat the latest quarter with EPS of $0.64 (vs. $0.63 est.) and revenue of $1.24B (up 25.8% YoY), while reporting a 12.76% net margin and 56.76% return on equity.
• Shares rose to $20.19 on heavy volume (~14.25M vs. avg. 6.71M); the stock trades at a ~20.8 P/E with a $12.23B market cap, and analysts' consensus is a Hold with an average price target of $31.86.

Gen Digital (NASDAQ:GEN - Get Free Report) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 2.850-2.950 for the period, compared to the consensus EPS estimate of 2.820. The company issued revenue guidance of $5.3 billion-$5.4 billion, compared to the consensus revenue estimate of $5.2 billion. Gen Digital also updated its Q1 2027 guidance to 0.680-0.700 EPS.

Gen Digital Price Performance

GEN traded up $0.63 during trading on Thursday, hitting $20.19. The company's stock had a trading volume of 14,247,313 shares, compared to its average volume of 6,712,784. The firm's 50 day moving average price is $20.19 and its two-hundred day moving average price is $23.94. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 3.50. Gen Digital has a 12 month low of $17.78 and a 12 month high of $32.22. The stock has a market capitalization of $12.23 billion, a price-to-earnings ratio of 20.81 and a beta of 1.10.

Gen Digital (NASDAQ:GEN - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $0.64 earnings per share for the quarter, topping analysts' consensus estimates of $0.63 by $0.01. The company had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. Gen Digital had a return on equity of 56.76% and a net margin of 12.76%.The firm's quarterly revenue was up 25.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.56 earnings per share. Sell-side analysts forecast that Gen Digital will post 2.29 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on GEN shares. Zacks Research upgraded Gen Digital from a "strong sell" rating to a "hold" rating in a research report on Wednesday, February 18th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Gen Digital in a report on Thursday, January 22nd. Wall Street Zen downgraded Gen Digital from a "buy" rating to a "hold" rating in a report on Saturday, April 25th. Jefferies Financial Group downgraded Gen Digital from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Finally, Wells Fargo & Company initiated coverage on Gen Digital in a report on Tuesday, March 3rd. They issued an "equal weight" rating and a $22.00 price objective for the company. Two investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Gen Digital currently has an average rating of "Hold" and an average price target of $31.86.

Institutional Investors Weigh In On Gen Digital

Large investors have recently modified their holdings of the business. MUFG Securities EMEA plc bought a new stake in shares of Gen Digital in the second quarter worth about $47,000. Geneos Wealth Management Inc. boosted its position in shares of Gen Digital by 221.5% during the first quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company's stock worth $46,000 after buying an additional 1,183 shares during the period. Brown Brothers Harriman & Co. boosted its position in shares of Gen Digital by 47.8% during the third quarter. Brown Brothers Harriman & Co. now owns 1,756 shares of the company's stock worth $50,000 after buying an additional 568 shares during the period. Larson Financial Group LLC boosted its position in shares of Gen Digital by 20.9% during the third quarter. Larson Financial Group LLC now owns 2,255 shares of the company's stock worth $64,000 after buying an additional 390 shares during the period. Finally, Quarry LP acquired a new position in shares of Gen Digital during the fourth quarter worth about $90,000. 81.38% of the stock is currently owned by institutional investors.

Gen Digital Company Profile

Gen Digital NASDAQ: GEN is a global cybersecurity company specializing in consumer- and small-business-focused security, privacy, and identity protection solutions. The company offers a suite of products designed to safeguard devices, networks, and personal information against malware, ransomware, phishing attacks and other digital threats. With a focus on user-friendly interfaces and cross-platform compatibility, Gen Digital develops antivirus software, VPN services, parental controls, password management tools, and comprehensive identity-theft monitoring services.

Gen Digital traces its origins to the consumer software division of Symantec Corporation, which was spun off in late 2019 under the NortonLifeLock name.

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