Shares of Gen Digital took a dive in after-hours trading on Thursday following the company's revised revenue guidance. The stock was down 5.1% to $22.70, erasing the 1.9% gain made during Thursday's regular trading session. Despite a strong performance over the past three months with a 43% increase, the cybersecurity-products company now expects its revenue for fiscal 2024 to be in the range of $3.805 billion to $3.815 billion, compared to the previous guidance of $3.81 billion to $3.835 billion.
Analysts surveyed by FactSet had anticipated a slightly higher revenue figure of $3.823 billion, but it seems that Gen Digital may fall short of these expectations.
Additionally, the company has revised its earnings guidance for the year, specifically lowering the top end of its adjusted earnings per share range. Excluding certain one-time items, Gen Digital now projects adjusted earnings of $1.95 to $1.97 per share for fiscal 2024, down from the previous guidance of $1.95 to $2.
Gen Digital, the parent company of Norton and LifeLock, reported a profit of $144 million, or 22 cents per share, compared to $165 million, or 25 cents per share, in the same period last year. While this represents a decrease, it is worth noting that the company still remains profitable.
However, investors seemed unsettled by the news as revenue only rose by 2% to $951 million, falling short of Wall Street's forecast of $956 million.
Overall, Gen Digital's outlook has raised concerns among investors and analysts alike. It remains to be seen how the company will address these challenges and whether it can regain momentum in the market.
