Cybersecurity firm Gen Digital beats revenue estimates on stable demand

(Reuters) – Gen Digital beat second-quarter revenue estimates on Tuesday as rising digital threats and hacks drove stable demand for its cybersecurity products, sending the company’s shares more than 3% higher before the bell.

Growing worries about privacy and cyber attacks have in the past year supported demand for cybersecurity services.

Gen Digital, which brings in a large chunk of its revenue from products aimed at consumers, has also leaned on its freemium options to spark demand at a time of high inflation.

Its revenue rose 27% to $948 million in the quarter ended Sept. 30, compared with analysts’ average estimate of $945.1 million, according to LSEG data.

The company, which offers antivirus software like Avast, Norton and Avira, posted an adjusted profit of 47 cents per share, in line with Wall Street expectations.

Gen Digital, whose products also include security solutions like firewalls, narrowed its fiscal year 2024 expectations to a range of $3.81 billion to $3.84 billion, from $3.80 billion to $3.85 billion previously.

Annual earnings per share is expected between $1.95 to $2.00 per share, compared with its earlier forecast of $1.95 to $2.02 per share.

(Reporting by Akshita Toshniwal; Editing by Shailesh Kuber)