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FireEye (FEYE) Q2 Earnings Meet, Revenues Miss Estimates
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FireEye recently posted second-quarter 2021 results, wherein non-GAAP earnings came in at 9 cents per share, in line with the Zacks Consensus Estimate. The company’s bottom line also remained flat, year on year.
Revenues increased 8% year over year to $248 million but marginally the consensus mark of $248.9 million by a whisker. The year-over-year increase was fueled by growth across each of the company’s categories. FireEye’s overall quarterly results also benefited from higher demand for cybersecurity solutions amid the pandemic-induced work-and-learn-from-home trend.
Pursuant to its ongoing agreement to sell the FireEye Products business to a consortium led by Symphony Technology Group, the company has classified the said business unit as discontinued operations. As a result, FireEye also provided condensed consolidated statements of operations excluding the discontinued operations.
Excluding the discontinued operations, FireEye’s revenues increased 17% year over year to $114 million. For the quarter, the company posted non-GAAP loss of 14 cents per share, marginally wider than the year-ago quarter’s loss per share of 13 cents.
The company added 248 new logo customers during the reported quarter. Of the total customers added, the company closed 47 transactions, valued at more than $1 million each, in the second quarter.
Annualized recurring revenues increased 19% year over year. Quarterly billings recorded a 23% year-on-year rise.
Gross margin contracted 60 basis points year over year to 63.1% for the combined operation.
Moreover, non-GAAP operating margin remained flat year over year at 10%.
Balance Sheet & Cash Flow
FireEye exited the second quarter with cash and cash equivalents, and short-term investments of $1.25 billion were marginally down from $1.3 billion as of Mar 31, 2021.
The company generated an operating cash flow of $44.3 million in the first half of 2021.
Guidance
FireEye provided third-quarter guidance for continuing operations. For the quarter, management anticipates revenues between $118 million and $122 million.
The company projects non-GAAP gross margin of 58-59%. Non-GAAP operating margin is estimated between negative 27% and negative 29%. FireEye expects non-GAAP loss per share from continuing operations in the band of 14-16 cents.
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FireEye (FEYE) Q2 Earnings Meet, Revenues Miss Estimates
FireEye recently posted second-quarter 2021 results, wherein non-GAAP earnings came in at 9 cents per share, in line with the Zacks Consensus Estimate. The company’s bottom line also remained flat, year on year.
Revenues increased 8% year over year to $248 million but marginally the consensus mark of $248.9 million by a whisker. The year-over-year increase was fueled by growth across each of the company’s categories. FireEye’s overall quarterly results also benefited from higher demand for cybersecurity solutions amid the pandemic-induced work-and-learn-from-home trend.
Pursuant to its ongoing agreement to sell the FireEye Products business to a consortium led by Symphony Technology Group, the company has classified the said business unit as discontinued operations. As a result, FireEye also provided condensed consolidated statements of operations excluding the discontinued operations.
Excluding the discontinued operations, FireEye’s revenues increased 17% year over year to $114 million. For the quarter, the company posted non-GAAP loss of 14 cents per share, marginally wider than the year-ago quarter’s loss per share of 13 cents.
FireEye, Inc. Price, Consensus and EPS Surprise
FireEye, Inc. price-consensus-eps-surprise-chart | FireEye, Inc. Quote
The company added 248 new logo customers during the reported quarter. Of the total customers added, the company closed 47 transactions, valued at more than $1 million each, in the second quarter.
Annualized recurring revenues increased 19% year over year. Quarterly billings recorded a 23% year-on-year rise.
Gross margin contracted 60 basis points year over year to 63.1% for the combined operation.
Moreover, non-GAAP operating margin remained flat year over year at 10%.
Balance Sheet & Cash Flow
FireEye exited the second quarter with cash and cash equivalents, and short-term investments of $1.25 billion were marginally down from $1.3 billion as of Mar 31, 2021.
The company generated an operating cash flow of $44.3 million in the first half of 2021.
Guidance
FireEye provided third-quarter guidance for continuing operations. For the quarter, management anticipates revenues between $118 million and $122 million.
The company projects non-GAAP gross margin of 58-59%. Non-GAAP operating margin is estimated between negative 27% and negative 29%. FireEye expects non-GAAP loss per share from continuing operations in the band of 14-16 cents.
Zacks Rank & Stocks to Consider
FireEye currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Microsoft (MSFT - Free Report) , Cadence Design Systems (CDNS - Free Report) and Texas Instruments (TXN - Free Report) , all carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Microsoft, Cadence Design and Texas Instruments is currently pegged at 11.5%, 11.7% and 9.3%, respectively.