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FireEye (FEYE) Q4 Earnings & Revenues Top Estimates, Up Y/Y

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FireEye, Inc. (FEYE - Free Report) 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 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.


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.

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