Stock price drops as revenue and earnings expectations are revised

  • Gen Digital shares slump 5.1% after missing 3Q estimates
  • Lowering FY24 revenue guidance to $3.805 billion to $3.815 billion
  • Adjusted earnings guidance also lowered for fiscal 2024
  • Profit of $144 million, compared to $165 million a year earlier
  • Revenue rose 2% to $951 million, missing Wall Street expectations

Shares of Gen Digital fell 5.1% after the company missed 3Q estimates and lowered its revenue and earnings guidance for fiscal year 2024. The cybersecurity-products company now expects revenue of $3.805 billion to $3.815 billion, compared to prior guidance of $3.81 billion to $3.835 billion. Adjusted earnings are now projected to be $1.95 to $1.97 per share, down from the previous guidance of $1.95 to $2 per share. In the third quarter, Gen Digital reported a profit of $144 million, a decrease from $165 million in the same period last year. Despite a 2% increase in revenue to $951 million, the company fell short of Wall Street expectations of $956 million.

Public Companies: Gen Digital (N/A)
Private Companies: undefined, undefined
Key People:

Factuality Level: 7
Justification: The article provides specific information about the stock price of Gen Digital, its revenue expectations, and adjusted earnings guidance. It also includes the comparison with analysts’ expectations and the previous year’s performance. However, the article lacks context about the reasons behind the stock price movement and the company’s financial performance. It also does not provide any analysis or expert opinions to support the information presented.

Noise Level: 3
Justification: The article provides relevant information about the stock performance and financial guidance of Gen Digital. However, it lacks in-depth analysis, scientific rigor, and actionable insights. The article also includes some repetitive information and does not explore the consequences of the company’s decisions on stakeholders.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Gen Digital

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article provides information about the financial performance of Gen Digital, including a decrease in stock price, revised revenue guidance, and adjusted earnings guidance. However, there is no mention of any extreme event.

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