Services
Why Analysts Are Taming LifeLock Expectations Despite Improvements
Published:
Last Updated:
LifeLock Inc. (NYSE: LOCK) had its share of problems with an FTC (Federal Trade Commission) issue before, and now its earnings gave sellers a reason to go in. This was LifeLock’s 43rd consecutive quarter of sequential growth in both revenue and cumulative ending members in the fourth quarter. As a result, a few analysts poured into the stock.
24/7 Wall St. has gathered a few analyst calls that followed LifeLock’s earnings report and we have made a brief montage of how they are viewing this company after it reported earnings. We also have included some highlights from the earnings report.
The company reported $0.30 in earnings per share (EPS) on $156.2 million in revenue for the fourth quarter, which compares to consensus EPS estimates that called for $0.30.
In terms of guidance, LifeLock expects to have a net loss of $0.08 to $0.07 per share on revenues in the range of $156 million to $158 million for the current quarter.
Merrill Lynch believes the company has recovering fundamentals but remains Neutral on the stock with a price objective of $12. The brokerage firm detailed in its report:
We see the latest quarter as an indication that fundamentals are beginning to recover with the business likely hitting full stride in 2H16. However, LT margin targets are also likely delayed as the company invests into R&D for security infrastructure and product development. We reiterate our Neutral rating and lower our PO to $12 from $15 to reflect lower market valuations.
24/7 Wall St.A few other analysts weighed in on LifeLock:
- Canaccord Genuity has a Buy rating and lowered the price target price to $15 from $17.
- Deutsche Bank has a Buy rating and lowered its price target to $20 from $23.
- Dougherty has a Buy rating and lowered its price target from $19 to $17.50.
- S&P Capital IQ maintained a Buy rating.
Shares of LifeLock closed Friday at $10.03, with a consensus analyst price target of $16.44 and a 52-week trading range of $7.18 to $17.43.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
