FireEye, Inc. ( FEYE Quick Quote FEYE - Free Report) recently reported first-quarter 2021 results, wherein non-GAAP earnings came in at 8 cents per share, beating the Zacks Consensus Estimate of 7 cents. The company’s bottom line also witnessed an improvement from the year-ago quarter’s non-GAAP net loss of 2 cents per share. Revenues increased 10% year over year to $246 million and surpassed the consensus mark of $237 million. The rally was fueled by growth across each of the company’s categories. FireEye’s overall quarterly results also benefited from increased demand for cybersecurity solutions amid the coronavirus-induced work-and-learn-from-home trend.
Quarter Details Segment-wise, product, subscription and support revenues increased 5.13% year over year to $183 million and revenues from professional services were up 25% to $63.3 million. Moreover, Mandiant Threat Intelligence recorded 25% year-over-year growth and Security Validation solutions reported strong results. Cloud endpoint solutions also witnessed strong traction. The company closed 30 transactions, valued at more than $1 million each, in the first quarter. Annualized recurring revenues increased 9% year over year. Quarterly billings recorded an 18% year-on-year rise. Non-GAAP gross margin expanded 200 basis points year over year to 73% due to a higher mix of incident response and increased margins in cloud-hosted products. Moreover, non-GAAP operating margin increased to 9% from a negative margin of 1%, mainly due to higher revenues and lower operating expenses. Balance Sheet & Cash Flow FireEye exited the first quarter with cash and cash equivalents, and short-term investments of approximately $1.3 billion, flat sequentially. The company generated an operating cash flow of $21 million in the March quarter. Guidance For second-quarter 2021, FireEye anticipates revenues between $245 million and $250 million. The Zacks Consensus Estimate for revenues currently stands at $244.24 million, suggesting a 6.24% improvement from the year-ago quarter’s reported number. Services revenues are expected between 15% and 20% year over year. The company anticipates non-GAAP gross margin of 72-73%. Margins of the services category are expected to decline sequentially. Non-GAAP operating margin is estimated between 9% and 10%. FireEye expects non-GAAP earnings in a band of 8-9 cents. The company also raised its revenue and earnings guidance for 2021. FireEye now anticipates revenues in the $1.01-$1.03 billion range, up from the previously anticipated band of $990 million to $1.01 billion. Moreover, it now expects non-GAAP earnings between 39 cents and 41 cents per share, higher than the earlier guidance of 35-37 cents. Zacks Rank and Stocks to Consider FireEye currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Lam Research Corporation ( LRCX Quick Quote LRCX - Free Report) , Micron Technology, Inc. ( MU Quick Quote MU - Free Report) and LG Display Co., Ltd. ( LPL Quick Quote LPL - Free Report) , each 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 Lam Research, Micron and LG Display is currently pegged at 32.8%, 15.66% and 29.82%, 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. You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >>