FireEye, Inc. is scheduled to report third-quarter 2018 results on Oct 30.
In the last reported quarter, the company reported breakeven earnings. The Zacks Consensus Estimate was pegged at a loss of a penny.
Revenues of $202.7 million reflected a year-over-year increase of 9.3%. Also, the top line beat the Zacks Consensus Estimate of $201 million.
The Zacks Consensus Estimate for the third quarter earnings is pegged at 2 cents per share, indicating a 150% improvement on a year-over-year basis. Revenues are estimated to be around 208.36 million, indicating a 9.89% increase from the year-ago quarter.
Let's see how things are shaping up for the upcoming announcement.
Factors at Play
FireEye is benefiting from its turnaround efforts, which include shifting the business model to a subscription-based one. Per management, improvement in sales execution coupled with a simplified go-to-market strategy, a revamped pricing model and increased partner engagement are the key growth drivers.
FireEye is gaining customer accounts which are driving revenue growth. Innovation in its Network and Email Security products is boosting adoption of cloud and virtual appliances, which is reflected in the growing number of new and renewal customers. This is expected to continue driving the company’s top line.
Moreover, the upcoming U.S midterm elections and recent high-profile security breach incidents are benefiting FireEye. The company recently came into the spotlight for its role in the uncovering of fake accounts on Facebook and Twitter, which were being used to propagate Iranian political interests.
Furthermore, improved operational efficiency and sales productivity are expected to continue driving FireEye’s operating results.
However, the company faces stiff competition from several big and small players in the security application market. Further, rising demand for IT security has made the market more attractive for new players.
There are some established players in adjacent markets like Cisco (CSCO - Free Report) and Juniper Networks (JNPR - Free Report) that are taking aggressive steps in the cyber-security space, further intensifying competition.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FireEye has a Zacks Rank #3 and an Earnings ESP of -6.67%.
A Stock to Consider
Here is a stock that you may consider as our model shows that this has the right combination of elements to post an earnings beat in its upcoming release:
Vishay Intertechnology (VSH - Free Report) with an Earnings ESP of +0.62% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Zacks Names "Single Best Pick to Double"
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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.
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FireEye, Inc. is scheduled to report third-quarter 2018 results on Oct 30.
In the last reported quarter, the company reported breakeven earnings. The Zacks Consensus Estimate was pegged at a loss of a penny.
Revenues of $202.7 million reflected a year-over-year increase of 9.3%. Also, the top line beat the Zacks Consensus Estimate of $201 million.
The Zacks Consensus Estimate for the third quarter earnings is pegged at 2 cents per share, indicating a 150% improvement on a year-over-year basis. Revenues are estimated to be around 208.36 million, indicating a 9.89% increase from the year-ago quarter.
Let's see how things are shaping up for the upcoming announcement.
Factors at Play
FireEye is benefiting from its turnaround efforts, which include shifting the business model to a subscription-based one. Per management, improvement in sales execution coupled with a simplified go-to-market strategy, a revamped pricing model and increased partner engagement are the key growth drivers.
FireEye is gaining customer accounts which are driving revenue growth. Innovation in its Network and Email Security products is boosting adoption of cloud and virtual appliances, which is reflected in the growing number of new and renewal customers. This is expected to continue driving the company’s top line.
Moreover, the upcoming U.S midterm elections and recent high-profile security breach incidents are benefiting FireEye. The company recently came into the spotlight for its role in the uncovering of fake accounts on Facebook and Twitter, which were being used to propagate Iranian political interests.
Furthermore, improved operational efficiency and sales productivity are expected to continue driving FireEye’s operating results.
However, the company faces stiff competition from several big and small players in the security application market. Further, rising demand for IT security has made the market more attractive for new players.
There are some established players in adjacent markets like Cisco (CSCO - Free Report) and Juniper Networks (JNPR - Free Report) that are taking aggressive steps in the cyber-security space, further intensifying competition.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FireEye has a Zacks Rank #3 and an Earnings ESP of -6.67%.
A Stock to Consider
Here is a stock that you may consider as our model shows that this has the right combination of elements to post an earnings beat in its upcoming release:
Vishay Intertechnology (VSH - Free Report) with an Earnings ESP of +0.62% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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