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FireEye (FEYE) Q3 Earnings & Revenues Top Estimates, Up Y/Y
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FireEye, Inc. reported better-than-expected results for third-quarter 2020. The company’s third-quarter non-GAAP earnings came in at 11 cents per share, while the Zacks Consensus Estimate was pegged at 7 cents. FireEye’s quarterly earnings also witnessed significant improvement from the year-ago quarter’s adjusted earnings of 2 cents per share.
Revenues increased 6% year over year to $238 million as well as surpassed the consensus mark of $227.3 million. FireEye’s overall quarterly results benefited from increased demand for cybersecurity solutions amid the coronavirus-induced work-and-learn-from-home trend.
Quarter Details
Segment wise, product, subscription and support revenues increased 2.2% year over year to $183.8 million and revenues from professional services were up 18.5% year over year to $54.6 million.
However, FireEye’s on-premise product and related business revenues decreased 8% year over year.
Quarterly billings of $203 million slid 4% year over year.
Non-GAAP gross margin contracted 200 basis points (bps) year over year to 71%. However, non-GAAP operating margin increased to 12% from the year-ago quarter’s 2%, mainly due to efficient cost management.
Balance Sheet & Cash Flow
FireEye exited the third quarter with cash and cash equivalents, and short-term investments of approximately $942 million, slightly up from the previous quarter’s $914 million.
The company generated operating cash flow of $33 million in the September-end quarter. In the first nine months of 2020, FireEye has generated $23.5 million.
Guidance
For fourth-quarter 2020, FireEye anticipates revenues between $237 million and $241 million. The Zacks Consensus Estimate for revenues currently stands at $236.4 million, calling for a 0.6% year-over-over improvement.
The company anticipates non-GAAP gross margin of 70-71%. Non-GAAP operating margin is estimated to be between 10% and 11%. FireEye expects non-GAAP earnings in the band of 9-11 cents.
Buoyed by better-than-expected third-quarter results, the company raised the outlook for full-year 2020. FireEye now anticipates revenues in the $930-$934 million band, up from the earlier projection of $905-$925 million. It also expects non-GAAP earnings between 28 cents and 30 cents, much higher than the previously-estimated range of 22-26 cents per share.
The long-term earnings growth rate for Zoom, Brightcove and CDW is currently pegged at 25%, 15%, and 13.1%, respectively.
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In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
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FireEye (FEYE) Q3 Earnings & Revenues Top Estimates, Up Y/Y
FireEye, Inc. reported better-than-expected results for third-quarter 2020. The company’s third-quarter non-GAAP earnings came in at 11 cents per share, while the Zacks Consensus Estimate was pegged at 7 cents. FireEye’s quarterly earnings also witnessed significant improvement from the year-ago quarter’s adjusted earnings of 2 cents per share.
Revenues increased 6% year over year to $238 million as well as surpassed the consensus mark of $227.3 million. FireEye’s overall quarterly results benefited from increased demand for cybersecurity solutions amid the coronavirus-induced work-and-learn-from-home trend.
Quarter Details
Segment wise, product, subscription and support revenues increased 2.2% year over year to $183.8 million and revenues from professional services were up 18.5% year over year to $54.6 million.
FireEye, Inc. Price, Consensus and EPS Surprise
FireEye, Inc. price-consensus-eps-surprise-chart | FireEye, Inc. Quote
However, FireEye’s on-premise product and related business revenues decreased 8% year over year.
Quarterly billings of $203 million slid 4% year over year.
Non-GAAP gross margin contracted 200 basis points (bps) year over year to 71%. However, non-GAAP operating margin increased to 12% from the year-ago quarter’s 2%, mainly due to efficient cost management.
Balance Sheet & Cash Flow
FireEye exited the third quarter with cash and cash equivalents, and short-term investments of approximately $942 million, slightly up from the previous quarter’s $914 million.
The company generated operating cash flow of $33 million in the September-end quarter. In the first nine months of 2020, FireEye has generated $23.5 million.
Guidance
For fourth-quarter 2020, FireEye anticipates revenues between $237 million and $241 million. The Zacks Consensus Estimate for revenues currently stands at $236.4 million, calling for a 0.6% year-over-over improvement.
The company anticipates non-GAAP gross margin of 70-71%. Non-GAAP operating margin is estimated to be between 10% and 11%. FireEye expects non-GAAP earnings in the band of 9-11 cents.
Buoyed by better-than-expected third-quarter results, the company raised the outlook for full-year 2020. FireEye now anticipates revenues in the $930-$934 million band, up from the earlier projection of $905-$925 million. It also expects non-GAAP earnings between 28 cents and 30 cents, much higher than the previously-estimated range of 22-26 cents per share.
Zacks Rank and Stocks to Consider
FireEye currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Zoom Video Communications (ZM - Free Report) , Brightcove (BCOV - Free Report) and CDW Corporation (CDW - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Zoom, Brightcove and CDW is currently pegged at 25%, 15%, and 13.1%, respectively.
Zacks’ 2020 Election Stock Report
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>