GEN Earnings Prediction
The chart below shows how GEN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GEN sees a -0.61% change in stock price 10 days leading up to the earnings, and a +5.57% change 10 days following the report. On the earnings day itself, the stock moves by +0.89%. This data can give you a slight idea of what to expect for the next quarter's release.
GEN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
951.00M
1.60%
0.32%
Gross Margin
74.45%
-0.03%
-0.17%
Operating Margin
35.44%
-19.49%
700.00%
Net Margin
15.14%
-14.12%
-3.69%
EPS
0.22
-12.00%
-4.35%
No Data Available
GEN Earnings Analysis
Gen Digital Inc Corporation (GEN.O) Earnings Conference Call
Positive
Cyber Safety Growth Metrics: Cyber safety bookings and revenue grew mid single digits, with EPS increasing by 15%, marking the 5th consecutive quarter of double-digit EPS growth.
Customer Base Expansion: Direct customer base reached a record 40.1 million, up 371,000 sequentially and 1.2 million year-over-year, demonstrating strong customer growth.
Q3 Revenue Increase: Q3 revenue was $986 million, up 4% in USD and constant currency, supported by broad-based growth across the product portfolio and geographies.
Operating Income Surge: Operating income increased to $577 million, reflecting a 58.5% operating margin, consistent with revenue growth and operational discipline.
Strong Cash Position: Free cash flow for Q3 was $318 million, contributing to a strong cash position with an ending cash balance of $883 million and total liquidity of $2.4 billion.
Negative
Cyber Safety Bookings Deceleration: Cyber Safety bookings growth slowed to 4% in Q3, down from 5% in the previous quarter, indicating a deceleration in demand.
Legacy Business Revenue Decline: Legacy business lines contributed only $12 million in revenue, down from $15 million in the prior quarter, reflecting a continued decline in this segment.
Limited Operational Leverage: Operating income growth was only 4% year over year, which is in line with revenue growth, suggesting limited operational leverage.
Debt Interest Burden: Interest expense related to debt was $134 million, indicating a significant financial burden that could impact future profitability.
Debt Refinancing Strategy: The company plans to refinance $1.1 billion in senior unsecured notes in Q4, highlighting potential liquidity concerns and the need for debt management.
GEN FAQs
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GEN Earning Call Sentiment
Earnings call transcript: Gen Digital Q3 2024 reports solid growth
GEN.O
-0.99%Positive
The earnings call reflects strong financial performance with revenue and EPS growth, supported by robust customer acquisition and retention. The company's strategic plans, including share repurchases and capital allocation, are favorable. While there are some uncertainties, such as the impact of the national public data breach and FX movements, overall guidance remains optimistic. The MoneyLion acquisition is expected to enhance cross-selling opportunities. Despite minor concerns, the positive elements outweigh the negatives, suggesting a positive stock price movement in the short term.
