NortonLifeLock (NASDAQ: NLOK) has been on a transformative journey since its acquisition by Broadcom Inc. (NASDAQ: AVGO) in November 2019. Broadcom changed the name of the company’s consumer antivirus product segment to NortonLifeLock while retaining Symantec brand rights. for your business cloud cybersecurity solutions. The company continues to improve its top and bottom results, but faces pressure on the price of its shares due to the wider sale of technology stocks across the market. NortonLifeLock is currently down 15.57% YTD and is trading 22% below MarketBeat consensus price target. Still, there is hope that the company will be able to recover strongly due to its performance and the promising offers of mergers and acquisitions in progress.
Fourth Quarter and Fiscal Year 2021 Results for NortonLifeLock
NortonLifeLock was successful in the fourth quarter and performed well overall in fiscal year 2021. The company ended up with solid revenue and profit growth. Revenue rose 10% year-on-year to $ 2.8 million, up $ 52.7% year-on-year, a 300 percent increase. The diluted EPA also rose to $ 1.75, up 22% year-over-year. The company got a good score where it matters most in free cash flow, with a 38% year-over-year increase to $ 968 million. NortonLifeLock CEO Vincent Pilette said these figures reflect good progress on the company’s transformation journey, with an accelerated pace of product innovation and global expansion. Executives noted that 4Q’21 marked the tenth consecutive quarter of growth of the top line. A quarterly cash dividend was also declared for shareholders. The company will pay $ 0.125 per common share on June 22, 2022.
In addition to posting strong profits, the company provided optimistic targeting figures for the rest of the year. Non-GAAP revenues are expected to be between $ 705 million and $ 715 million, a year-over-year increase of approximately 5 to 7%. The non-GAAP EPA is expected to be between $ 0.42 and $ 0.44.
NortonLifeLock and Avast Merger
One of NortonLifeLock’s most significant developments is its proposed $ 8 billion merger with Avast, which will combine NortonLifeLock’s identity theft protection features with Avast’s privacy features. If the merger goes ahead, it will be one of the largest of its kind among competitors in the consumer antivirus industry, as it will serve more than 500 million customers. The deal has been criticized by British antitrust regulators in March this year. The UK Competition and Markets Authority (CMA) said the merger could hurt competition in the market and limit consumers’ options for protection against computer viruses. Since then, the authority has asked companies to submit proposals to address these anti-competitive concerns. The merger is currently in Phase 2 review with the CMA and is expected to close in mid or late 2022.
NortonLifeLock Technical Analysis
NortonLifeLock has experienced a sharp sell-off in its stock price that began in late January with linear regression techniques. There is a clear downward trend. One thing of particular concern in the short term is that there is more volume in red candles than in green candles, which means motivated sales by bears. The sale has caused the shares to overtake the RSI, so a rebound closer to the average price of 24.27 is expected. Shares also broke below the lower standard deviation of Bollinger Bands, meaning they are more likely to recover slightly in the future. However, this overselling rebound is unlikely to change the overall trajectory of the stock given the strength of the trend and the worsening of sentiment in the general market. Therefore, a new sale of the shares would have to be expected.