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Based in Tempe, Arizona, Gen Digital Inc. (GEN) is a cybersecurity company that provides cyber safety, online privacy, and identity protection solutions. Valued at a market cap of almost $17 billion, the company offers security and performance products under various brands, including Norton, Avast, Avira, AVG, and CCleaner. It is scheduled to announce its fiscal Q3 earnings results after the market closes on Thursday, Jan. 30.
Prior to this event, analysts expect the software company to report a profit of $0.50 per share, up 11.1% from $0.45 per share in the year-ago quarter. The company has met Wall Street's earnings estimates in three of the last four quarters while missing on one other occasion. Its earnings of $0.49 per share in the previous quarter fell short of Wall Street’s forecasted figure by a slight margin of 2%.
Over the longer term, analysts expect GEN to report an EPS of $2.03 in fiscal 2025, up 12.8% from $1.80 in fiscal 2024.
Shares of GEN have gained 20.6% over the past 52 weeks, slightly trailing behind both the S&P 500 Index's ($SPX) 26.5% rise and the Technology Select Sector SPDR Fund’s (XLK) 22.1% return over the same time frame.
Shares of GEN soared 8.2% following its Q2 earnings release on Oct. 30. as the company delivered revenues of $974 million that marginally exceeded the Street’s forecasted figure. Moreover, the top line grew 3% year-over-year, primarily due to decent demand in the cyber safety space. Meanwhile, the bottom-line figure improved by 16% from the year-ago quarter thanks to GEN’s disciplined spending and cost synergies from the NortonLifeLock and Avast merger.
Additionally, the company raised the lower end of its full-year 2025 revenue and EPS guidance in the range of $3.91 billion to $3.93 billion and $2.18 to $2.23, respectively.
Wall Street analysts are moderately optimistic about Gen Digital’s stock, with a "Moderate Buy" rating overall. Among eight analysts covering the stock, five recommend "Strong Buy," and three suggest “Hold.” This configuration is more bullish than three months ago, with three analysts suggesting a “Strong Buy.”
The mean price target for GEN is $32.62, which indicates an 18.5% potential upside from the current levels.
