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Axon Enterprise, Autoweb and FireEye highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL – May 3, 2018 – Zacks Equity Research highlights Axon Enterprise as the Bull of the Day, Autoweb as the Bear of the Day. In addition, Zacks Equity Research provides analysis on FireEye, Inc. .

Here is a synopsis of all three stocks:

Bull of the Day:

When publicly-traded companies change their names, it throws everybody off. I understand why they do it. There’s no easier way to reinvent yourself than a name change. Prince, Ron Artest, and ODB all did it. Why shouldn’t companies? Today’s Bull of the Day is one of those companies. The company formerly known as Taser, Axon Enterprise.

Axon Enterprise, Inc. develops, manufactures, and sells conducted electrical weapons (CEWs) worldwide. The company operates through two segments, TASER Weapons, and Software and Sensors.. The company also provides Axon Body 2 and Axon Flex 2 that builds upon the Axon Flex camera system; Axon Fleet, an in-car video system; Axon Dock, a camera charging station; TASER Cam HD, a recording device; Axon Signal, a technology; and Signal Sidearm, a device compatible with firearm holsters. In addition, it offers Evidence.com, a cloud-based digital evidence management system that allows agencies to store data and enables new workflows for managing and sharing that data.

No wonder the company decided to rebrand itself. It’s expanded its scope well beyond those electrification devices they use on unruly citizens. Bet you didn’t realize they were a cloud company now. We’ve got them as a Zacks Rank #1 (Strong Buy) and it’s mostly due to analyst action surrounding the current year and next year EPS numbers. Over the last 30 days, analysts have increased their EPS estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimate from 18 cents to 39 cents for the current year while moving next year’s number from 50 cents to 68 cents.

Bear of the Day:

Some online or mobile auto sales companies are rocking and rolling. Just ask Carvanashareholders basking in the light. Car sales have continued to come in at or near records from a lot of manufacturers. Crossover sales have helped a bunch, but so has the overall global economy strength. This car sales company is not doing so well. It’s a Zacks Rank #5 (Strong Sell) and our Bear of the Day, formerly known as Autobytel, Autoweb.

AutoWeb, Inc. operates as an automotive marketing services company in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, as well as finance leads program, which provides vehicle financing and other services from dealers or financial institutions. It owns and operates an automotive Website, Autobytel.com that offers consumers the information and tools to aid them with their automotive purchase decisions; and an automotive search engine that enables manufactures and dealers to optimize advertising campaigns. 

The reason for the harsh Zacks Rank is the recent string of bearish estimate revisions following the last earnings reports. For the current year, two analysts have cut their earnings estimates. The bearish moves have dropped our Zacks Consensus Estimate from 95 cents down to 22 cents. The current quarter number has come down from 17 cents to negative 2. That sort of contraction is not what you want to see when you’re investing for the long run.

Additional content:

FireEye Reports Q1 Earnings Results, Revenue Tops

FireEye, Inc.just released its latest quarterly financial results, posting a non-GAAP loss of $0.04 per share and revenues of $199 million.

Currently, FEYE is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have gained about 8.5% over the past month, including a 0.9% gain during regular trading hours today.

The stock is currently down 5.7% to $17.50 per share in after-hours trading shortly after its earnings report was released.

FireEye:

Matched earnings estimates. The company posted a non-GAAP loss of 4 cents per share, matching the Zacks Consensus Estimate of 4 cent loss. Investors should note that this consensus projection has remained steady over the duration of the quarter.

Beat revenue estimates. The company saw revenue figures of $199 million, topping our consensus estimate of $194.1 million. Total revenue was up 8% year over year and ahead of the company’s guidance range of $192 million to $197 million.

Billings reached $175.1 million in the quarter, an increase of 21% from the year-ago period and above the company’s guidance of $165 million to $175 million. GAAP gross margin increased to 66% from 64%.

“Our frontline knowledge of the threat landscape and how organizations are combating cyber attacks is at the heart of our unique innovation cycle,” said CEO Kevin Mandia. “FireEye network, email and endpoint security products continue to detect attacks that evade other security solutions. Our Helix platform operationalizes our intelligence and expertise to reduce the complexity of security operations and capture the untapped potential of prior security investments.”

For the second quarter of fiscal 2018, FireEye expects total revenue in the range of $199 million to $203 million. Meanwhile, non-GAAP net income per share is expected to be between -$0.03 and $0.00. Heading into the day, our Zacks Consensus Estimates were calling for earnings of -$0.01 per share and revenue of $201 million.

FireEye Inc. provides security platform for cyber-attacks to enterprises and governments. The company offers web security, email security, file security and malware analysis. It provides products and services through distributors, resellers and strategic partners primarily in the United States, the Asia Pacific, Japan, Europe, the Middle East, Africa and internationally.

Check back later for our full analysis on FEYE’s earnings report!

Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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