Shares of Mandiant plunged 5.5% on Friday after the company reported lower-than-expected bottom-line result for third-quarter 2021. The cyber defense, intelligence and response solution provider posted a non-GAAP loss from continuing operations of 15 cents per share, which is wider than the year-ago quarter’s loss of 13 cents. The Zacks Consensus Estimate for third-quarter earnings was pegged at 6 cents.
However, Mandiant’s third-quarter revenues of $122 million surpassed the Zacks Consensus Estimate of $120 million. Also, the top-line registered a 22% increase from the year-ago quarter’s revenues of $100 million.
This was Mandiant’s first quarterly results, following the divestiture of its FireEye Product business. On Oct 8, 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, Mandiant classified FireEye Product business as discontinued operations and henceforth the business hasn’t been included in third-quarter financial results from continuing operations.
Annualized recurring revenues increased 26% year over year to $264 million.
Non-GAAP gross margin expanded 400 basis points year over year to 61% for continuing operations.
The company reported a non-GAAP operating loss of $32.4 million for the third quarter, 13.7% higher than the year-ago quarter’s operating loss of $28.5 million.
Balance Sheet & Cash Flow
Mandiant exited the third quarter with cash and cash equivalents, and short-term investments of $1.23 billion, which were marginally down from $1.25 billion as of Jun 30, 2021.
The company generated an operating cash flow of $89.9 million in the first nine months of 2021.
Guidance
Mandiant provided fourth-quarter guidance for continuing operations. For the quarter, management anticipates revenues between $129 million and $133 million.
The company projects non-GAAP gross margin of 61-62%. Non-GAAP operating margin is estimated between negative 20% and negative 22%. Mandiant expects non-GAAP loss per share from continuing operations in the band of 12-13 cents.
Zacks Rank & Stocks to Consider
Mandiant currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Broadcom (AVGO - Free Report) and Perficient (PRFT - Free Report) , all currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Applied Materials, Broadcom and Perficient is currently pegged at 19.4%, 15% and 18%, respectively.
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Shares of Mandiant plunged 5.5% on Friday after the company reported lower-than-expected bottom-line result for third-quarter 2021. The cyber defense, intelligence and response solution provider posted a non-GAAP loss from continuing operations of 15 cents per share, which is wider than the year-ago quarter’s loss of 13 cents. The Zacks Consensus Estimate for third-quarter earnings was pegged at 6 cents.
However, Mandiant’s third-quarter revenues of $122 million surpassed the Zacks Consensus Estimate of $120 million. Also, the top-line registered a 22% increase from the year-ago quarter’s revenues of $100 million.
This was Mandiant’s first quarterly results, following the divestiture of its FireEye Product business. On Oct 8, 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, Mandiant classified FireEye Product business as discontinued operations and henceforth the business hasn’t been included in third-quarter financial results from continuing operations.
Annualized recurring revenues increased 26% year over year to $264 million.
Non-GAAP gross margin expanded 400 basis points year over year to 61% for continuing operations.
The company reported a non-GAAP operating loss of $32.4 million for the third quarter, 13.7% higher than the year-ago quarter’s operating loss of $28.5 million.
Balance Sheet & Cash Flow
Mandiant exited the third quarter with cash and cash equivalents, and short-term investments of $1.23 billion, which were marginally down from $1.25 billion as of Jun 30, 2021.
The company generated an operating cash flow of $89.9 million in the first nine months of 2021.
Guidance
Mandiant provided fourth-quarter guidance for continuing operations. For the quarter, management anticipates revenues between $129 million and $133 million.
The company projects non-GAAP gross margin of 61-62%. Non-GAAP operating margin is estimated between negative 20% and negative 22%. Mandiant expects non-GAAP loss per share from continuing operations in the band of 12-13 cents.
Zacks Rank & Stocks to Consider
Mandiant currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Broadcom (AVGO - Free Report) and Perficient (PRFT - Free Report) , all currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Applied Materials, Broadcom and Perficient is currently pegged at 19.4%, 15% and 18%, respectively.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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