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Why Is Mandiant (MNDT) Up 0.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Mandiant . Shares have added about 0.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Mandiant due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Mandiant Q2 Loss Narrows, Revenues Surge in Double Digit
Mandiant posted a non-GAAP loss of 13 cents per share in the second quarter of 2022, missing the Zacks Consensus Estimate of a loss of 10 cents. However, the quarterly loss per share was a penny lower than the year-ago quarter’s loss of 14 cents.
Mandiant’s second-quarter revenues of $137.9 million surpassed the Zacks Consensus Estimate of $132.2 million. Also, the top line registered a 21% increase from the year-ago quarter’s revenues of $113.9 million.
This was Mandiant’s fourth quarterly results following the divestiture of its FireEye Product business. On Oct 8, 2021, the company completed the sale of its FireEye Product business to a consortium led by the private equity firm, Symphony Technology Group, in an all-cash transaction worth $1.2 billion.
Pursuant to the asset divestiture, MNDT classified the FireEye Product business as discontinued operations, and the business hasn’t been included in second-quarter financial results from continuing operations.
Quarter in Detail
Revenues from Mandiant’s platform, cloud subscription and managed services division increased 19.5% year over year to $62.1 million. Its professional services segment’s revenues surged 22.4% year over year to $75.9 million.
Mandiant’s second-quarter 2022 billings grew 11% year over year to $145.8 million, primarily driven by strong billings registered across both operating segments. Professional services billings grew 13%, while Platform, cloud subscription and managed services billings increased 10%.
Annualized recurring revenues increased 25% year over year to $305.5 million.
The non-GAAP gross margin remained flat on a year-over-year basis while improving 100 basis points sequentially to 59% in the second quarter. The company reported a non-GAAP operating margin of negative 20% compared favorably with negative 26% in the year-ago quarter as well as in the previous quarter.
Balance Sheet & Cash Flow
Mandiant exited the second quarter with cash and cash equivalents and short-term investments of $1.64 billion, which were lower than $2.13 billion as of Mar 31, 2022.
During the quarter, the company used $38.5 million of cash for operational activities and had negative free cash flow of $45.7 million.
Guidance
Pursuant to its Mar 8, 2022 announcement of entering into a definitive agreement to be acquired by Google LLC, Mandiant didn’t hold the post-earnings conference. Also, the company did not provide guidance for the second quarter and withdrew its full-year 2022 guidance.
On its fourth-quarter 2021 earnings conference call, management anticipated revenues and annualized recurring revenues in the range of $555-$565 million and $360-$366 million, respectively, for full-year 2022.
The company projected the non-GAAP gross margin of 61.5-62.5%. The non-GAAP operating margin was estimated between negative 13% and negative 14%. Mandiant expected the non-GAAP loss per share from continuing operations in the band of 36-38 cents for full-year 2022.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Mandiant has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Mandiant has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Mandiant belongs to the Zacks Security industry. Another stock from the same industry, Check Point Software (CHKP - Free Report) , has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Check Point reported revenues of $571.1 million in the last reported quarter, representing a year-over-year change of +8.6%. EPS of $1.64 for the same period compares with $1.61 a year ago.
Check Point is expected to post earnings of $1.67 per share for the current quarter, representing a year-over-year change of +1.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Check Point. Also, the stock has a VGM Score of C.
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Why Is Mandiant (MNDT) Up 0.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Mandiant . Shares have added about 0.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Mandiant due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Mandiant Q2 Loss Narrows, Revenues Surge in Double Digit
Mandiant posted a non-GAAP loss of 13 cents per share in the second quarter of 2022, missing the Zacks Consensus Estimate of a loss of 10 cents. However, the quarterly loss per share was a penny lower than the year-ago quarter’s loss of 14 cents.
Mandiant’s second-quarter revenues of $137.9 million surpassed the Zacks Consensus Estimate of $132.2 million. Also, the top line registered a 21% increase from the year-ago quarter’s revenues of $113.9 million.
This was Mandiant’s fourth quarterly results following the divestiture of its FireEye Product business. On Oct 8, 2021, the company completed the sale of its FireEye Product business to a consortium led by the private equity firm, Symphony Technology Group, in an all-cash transaction worth $1.2 billion.
Pursuant to the asset divestiture, MNDT classified the FireEye Product business as discontinued operations, and the business hasn’t been included in second-quarter financial results from continuing operations.
Quarter in Detail
Revenues from Mandiant’s platform, cloud subscription and managed services division increased 19.5% year over year to $62.1 million. Its professional services segment’s revenues surged 22.4% year over year to $75.9 million.
Mandiant’s second-quarter 2022 billings grew 11% year over year to $145.8 million, primarily driven by strong billings registered across both operating segments. Professional services billings grew 13%, while Platform, cloud subscription and managed services billings increased 10%.
Annualized recurring revenues increased 25% year over year to $305.5 million.
The non-GAAP gross margin remained flat on a year-over-year basis while improving 100 basis points sequentially to 59% in the second quarter. The company reported a non-GAAP operating margin of negative 20% compared favorably with negative 26% in the year-ago quarter as well as in the previous quarter.
Balance Sheet & Cash Flow
Mandiant exited the second quarter with cash and cash equivalents and short-term investments of $1.64 billion, which were lower than $2.13 billion as of Mar 31, 2022.
During the quarter, the company used $38.5 million of cash for operational activities and had negative free cash flow of $45.7 million.
Guidance
Pursuant to its Mar 8, 2022 announcement of entering into a definitive agreement to be acquired by Google LLC, Mandiant didn’t hold the post-earnings conference. Also, the company did not provide guidance for the second quarter and withdrew its full-year 2022 guidance.
On its fourth-quarter 2021 earnings conference call, management anticipated revenues and annualized recurring revenues in the range of $555-$565 million and $360-$366 million, respectively, for full-year 2022.
The company projected the non-GAAP gross margin of 61.5-62.5%. The non-GAAP operating margin was estimated between negative 13% and negative 14%. Mandiant expected the non-GAAP loss per share from continuing operations in the band of 36-38 cents for full-year 2022.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Mandiant has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Mandiant has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Mandiant belongs to the Zacks Security industry. Another stock from the same industry, Check Point Software (CHKP - Free Report) , has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Check Point reported revenues of $571.1 million in the last reported quarter, representing a year-over-year change of +8.6%. EPS of $1.64 for the same period compares with $1.61 a year ago.
Check Point is expected to post earnings of $1.67 per share for the current quarter, representing a year-over-year change of +1.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Check Point. Also, the stock has a VGM Score of C.