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FireEye (FEYE) Q4 Earnings & Revenues Top Estimates, Up Y/Y
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FireEye, Inc. reported better-than-expected fourth-quarter 2020 results. The company’s non-GAAP earnings came in at 12 cents per share, beating the Zacks Consensus Estimate of 10 cents. FireEye’s bottom line also witnessed improvement from the year-ago quarter’s adjusted earnings of 7 cents per share.
Revenues increased 5% year over year to $248 million as well as surpassed the consensus mark of $239 million. FireEye’s overall quarterly results benefited from increased demand for cybersecurity solutions amid the coronavirus-induced work-and-learn-from-home trend.
Segment wise, product, subscription and support revenues increased 2.5% year over year to $189.7 million and revenues from professional services were up 15.4% to $57.8 million.
Moreover, the Mandiant Threat Intelligence and Security Validation solutions recorded strong results.
The company closed 64 transactions valued more than $1 million each, in the fourth quarter.
However, annualized recurring revenues from FireEye’s on-premise product and related business decreased 3% year over year.
Quarterly billings returned to growth, recording double-digit rise.
Non-GAAP gross margin contracted 100 basis points year over year to 72%, due to higher mix of revenues from services. However, non-GAAP operating margin increased to 12% from 7%, mainly due to higher revenues and lower operating expenses.
Balance Sheet & Cash Flow
FireEye exited the fourth quarter with cash and cash equivalents, and short-term investments of approximately $1.3 billion, up from the previous quarter’s $942 million.
The company generated operating cash flow of $71 million in the December quarter. In the full year, FireEye generated $95 million.
Guidance
For first-quarter 2021, FireEye anticipates revenues between $235 million and $238 million. The Zacks Consensus Estimate for revenues currently stands at $239.48 million, suggesting a 1.87% improvement from the year-ago reported number.
The company anticipates non-GAAP gross margin of 70-71%. Non-GAAP operating margin is estimated to be between 6.5% and 7.5%. FireEye expects non-GAAP earnings in the band of 5-7 cents.
The company also provided outlook for full-year 2021. FireEye anticipates revenues in the $990 million-$1.01 billion band. It also expects non-GAAP earnings between 35 cents and 37 cents.
The long-term earnings growth rate for Texas Instruments Incorporated, Zoom Video Communications and Shopify is currently pegged at 9.33%, 25%, and 32.5%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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FireEye (FEYE) Q4 Earnings & Revenues Top Estimates, Up Y/Y
FireEye, Inc. reported better-than-expected fourth-quarter 2020 results. The company’s non-GAAP earnings came in at 12 cents per share, beating the Zacks Consensus Estimate of 10 cents. FireEye’s bottom line also witnessed improvement from the year-ago quarter’s adjusted earnings of 7 cents per share.
Revenues increased 5% year over year to $248 million as well as surpassed the consensus mark of $239 million. FireEye’s overall quarterly results benefited from increased demand for cybersecurity solutions amid the coronavirus-induced work-and-learn-from-home trend.
FireEye, Inc. Price, Consensus and EPS Surprise
FireEye, Inc. price-consensus-eps-surprise-chart | FireEye, Inc. Quote
Quarter Details
Segment wise, product, subscription and support revenues increased 2.5% year over year to $189.7 million and revenues from professional services were up 15.4% to $57.8 million.
Moreover, the Mandiant Threat Intelligence and Security Validation solutions recorded strong results.
The company closed 64 transactions valued more than $1 million each, in the fourth quarter.
However, annualized recurring revenues from FireEye’s on-premise product and related business decreased 3% year over year.
Quarterly billings returned to growth, recording double-digit rise.
Non-GAAP gross margin contracted 100 basis points year over year to 72%, due to higher mix of revenues from services. However, non-GAAP operating margin increased to 12% from 7%, mainly due to higher revenues and lower operating expenses.
Balance Sheet & Cash Flow
FireEye exited the fourth quarter with cash and cash equivalents, and short-term investments of approximately $1.3 billion, up from the previous quarter’s $942 million.
The company generated operating cash flow of $71 million in the December quarter. In the full year, FireEye generated $95 million.
Guidance
For first-quarter 2021, FireEye anticipates revenues between $235 million and $238 million. The Zacks Consensus Estimate for revenues currently stands at $239.48 million, suggesting a 1.87% improvement from the year-ago reported number.
The company anticipates non-GAAP gross margin of 70-71%. Non-GAAP operating margin is estimated to be between 6.5% and 7.5%. FireEye expects non-GAAP earnings in the band of 5-7 cents.
The company also provided outlook for full-year 2021. FireEye anticipates revenues in the $990 million-$1.01 billion band. It also expects non-GAAP earnings between 35 cents and 37 cents.
Zacks Rank and Stocks to Consider
FireEye currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Texas Instruments Incorporated (TXN - Free Report) , Zoom Video Communications (ZM - Free Report) and Shopify (SHOP - 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 Texas Instruments Incorporated, Zoom Video Communications and Shopify is currently pegged at 9.33%, 25%, and 32.5%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>