LifeLock, Inc. (NASDAQ: LOCK)
LifeLock, Inc. (LOCK), an identity theft protection company on Wednesday announced positive financial results for third quarter 2015.
LifeLock, Inc. Earnings Results
Total revenue was $152.0 million for the third quarter of 2015, up 24% from $123.0 million for the third quarter of 2014. Adjusted net income was $27.6 million for the third quarter of 2015, compared with adjusted net income of $15.9 million for the third quarter of 2014. Q3 adjusted net income was $0.28 per diluted share, up 75% year-over-year. Q3 cumulative ending members of approximately 4.1 million, up 16% year-over-year. Business Wire
LifeLock, Inc. CEO Comments
“We are pleased with our performance in the quarter, which reflected a 24% increase in revenues and strong gains in adjusted net income and Adjusted EBITDA,” said Todd Davis, LifeLock’s Chairman and CEO. “In addition, we believe the agreements we announced today are in the best interest of our shareholders and represent a positive step toward achieving closure on substantial outstanding litigation against the Company. These settlements, if approved, will enable all of us to focus on our mission of protecting our members.” Business Wire
LOCK Technical Analysis
LOCK gapped up in price yesterday to $13.65, up from the prior day’s close of $9.69, which is a 41% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on July 20th, when it closed at $16.06. On that occasion, LOCK tanked all the way to lows of $7.70 on the very next day of trading, or equivalent to a 52% drop in price. The drop was due to the Federal Trade Commission claiming that LifeLock violated a 2010 order, which stated the company was engaging in deceptive advertising and had to pay a settlement where they were required to take more stringent measures to guard customers personal information. LOCK does have a high float of 80.43 million shares but traded over 2.5 times the normal daily trading volume. The stock did reach pre market highs of $14.59 but it gave back $0.94 at the open, or equivalent to 6%. For trading purposes, my entry point would have been $13.75 looking for a run through $14. My stop loss would have been $13.60 fearing anything below that and the stock would start to fill in the gap up.
Company Profile
LifeLock, Inc. provides identity theft protection services for consumers; and consumer risk management services for enterprises in the United States. It protects consumer subscribers through monitoring identity-related events, such as new account openings and credit-related applications; and enterprise customers through delivering on-demand identity risk, identity authentication, and credit information about consumers. The company offers LifeLock Identity Alert system, which provides its members with notifications and alerts, including actionable alerts for new account openings and applications, and a response system for identity threats via text message, phone call, mobile application, or e-mail; LifeLock Standard, LifeLock Advantage, LifeLock Ultimate Plus, basic LifeLock, LifeLock Command Center, and premium LifeLock Ultimate services; LifeLock Junior service, which provides identity theft protection services for minors; and LifeLock Wallet mobile application that allows consumers to replicate and store a digital copy of their personal wallet contents on their smart device for records backup, as well as mobile use of items, such as credit, identification, ATM, insurance, and loyalty cards. It also provides ID Score, an identity risk service, which delivers on-demand assessment of the risk of an individual at account opening and throughout the customer lifecycle; and credit risk services to provide real-time visibility into consumer stability. As of December 31, 2014, the company served approximately 3.6 million paying members; and approximately 300 enterprise customers, including financial institutions, telecommunication and cable services providers, government agencies, technology companies, large retailers, automobile and mortgage lenders, and e-commerce providers. LifeLock, Inc. was founded in 2005 and is headquartered in Tempe, Arizona. Yahoo Finance
