Gen Digital to Report Q3 Earnings: What's in Store for the Stock?

Core Viewpoint - Gen Digital Inc. is expected to report its third-quarter fiscal 2025 results on January 30, with anticipated non-GAAP revenues between $980 million and$990 million, reflecting a year-over-year growth of 3.4% [1][2]. Financial Performance Expectations - The consensus estimate for Gen Digital's revenues is $985.7 million, while non-GAAP earnings are projected to be between 54 and 56 cents per share, with a consensus mark of 55 cents per share, indicating a year-over-year increase of 12.2$621.1 million, a 3.2% year-over-year increase [6]. - The Identity and Information Protection division is projected to see revenues of $351.9 million, indicating a growth of 5.4% from the previous year [6]. - Strong demand for identity theft protection solutions and strategic partnerships are anticipated to contribute positively to top-line growth [7]. Challenges and Economic Context - Despite the positive outlook, Gen Digital's performance may be affected by a decline in IT spending due to high interest rates and inflation, which are impacting consumer spending and leading enterprises to defer IT investments [8]. - Ongoing macroeconomic and geopolitical challenges are also expected to influence the company's fiscal third-quarter results [8]. Earnings Prediction Model - According to the Zacks model, Gen Digital currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating that the odds of an earnings beat are not favorable at this time [9].