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Mandiant (MNDT) Q3 Loss Widens, Sales Top, Stock Down 6%
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Shares of Mandiant plunged 5.5% on Friday after the company reported lower-than-expected bottom-line result for third-quarter 2021. The cyber defense, intelligence and response solution provider posted a non-GAAP loss from continuing operations of 15 cents per share, which is wider than the year-ago quarter’s loss of 13 cents. The Zacks Consensus Estimate for third-quarter earnings was pegged at 6 cents.
However, Mandiant’s third-quarter revenues of $122 million surpassed the Zacks Consensus Estimate of $120 million. Also, the top-line registered a 22% increase from the year-ago quarter’s revenues of $100 million.
This was Mandiant’s first quarterly results, following the divestiture of its FireEye Product business. On Oct 8, the company completed the sale of its FireEye Product business to a consortium led by the private-equity firm Symphony Technology Group in an all-cash transaction worth $1.2 billion.
Pursuant to the asset divestiture, Mandiant classified FireEye Product business as discontinued operations and henceforth the business hasn’t been included in third-quarter financial results from continuing operations.
Annualized recurring revenues increased 26% year over year to $264 million.
Non-GAAP gross margin expanded 400 basis points year over year to 61% for continuing operations.
The company reported a non-GAAP operating loss of $32.4 million for the third quarter, 13.7% higher than the year-ago quarter’s operating loss of $28.5 million.
Balance Sheet & Cash Flow
Mandiant exited the third quarter with cash and cash equivalents, and short-term investments of $1.23 billion, which were marginally down from $1.25 billion as of Jun 30, 2021.
The company generated an operating cash flow of $89.9 million in the first nine months of 2021.
Guidance
Mandiant provided fourth-quarter guidance for continuing operations. For the quarter, management anticipates revenues between $129 million and $133 million.
The company projects non-GAAP gross margin of 61-62%. Non-GAAP operating margin is estimated between negative 20% and negative 22%. Mandiant expects non-GAAP loss per share from continuing operations in the band of 12-13 cents.
Zacks Rank & Stocks to Consider
Mandiant currently carries a Zacks Rank #3 (Hold).
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Mandiant (MNDT) Q3 Loss Widens, Sales Top, Stock Down 6%
Shares of Mandiant plunged 5.5% on Friday after the company reported lower-than-expected bottom-line result for third-quarter 2021. The cyber defense, intelligence and response solution provider posted a non-GAAP loss from continuing operations of 15 cents per share, which is wider than the year-ago quarter’s loss of 13 cents. The Zacks Consensus Estimate for third-quarter earnings was pegged at 6 cents.
However, Mandiant’s third-quarter revenues of $122 million surpassed the Zacks Consensus Estimate of $120 million. Also, the top-line registered a 22% increase from the year-ago quarter’s revenues of $100 million.
This was Mandiant’s first quarterly results, following the divestiture of its FireEye Product business. On Oct 8, the company completed the sale of its FireEye Product business to a consortium led by the private-equity firm Symphony Technology Group in an all-cash transaction worth $1.2 billion.
Pursuant to the asset divestiture, Mandiant classified FireEye Product business as discontinued operations and henceforth the business hasn’t been included in third-quarter financial results from continuing operations.
Mandiant, Inc. Price, Consensus and EPS Surprise
Mandiant, Inc. price-consensus-eps-surprise-chart | Mandiant, Inc. Quote
Annualized recurring revenues increased 26% year over year to $264 million.
Non-GAAP gross margin expanded 400 basis points year over year to 61% for continuing operations.
The company reported a non-GAAP operating loss of $32.4 million for the third quarter, 13.7% higher than the year-ago quarter’s operating loss of $28.5 million.
Balance Sheet & Cash Flow
Mandiant exited the third quarter with cash and cash equivalents, and short-term investments of $1.23 billion, which were marginally down from $1.25 billion as of Jun 30, 2021.
The company generated an operating cash flow of $89.9 million in the first nine months of 2021.
Guidance
Mandiant provided fourth-quarter guidance for continuing operations. For the quarter, management anticipates revenues between $129 million and $133 million.
The company projects non-GAAP gross margin of 61-62%. Non-GAAP operating margin is estimated between negative 20% and negative 22%. Mandiant expects non-GAAP loss per share from continuing operations in the band of 12-13 cents.
Zacks Rank & Stocks to Consider
Mandiant currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Broadcom (AVGO - Free Report) and Perficient (PRFT - Free Report) , all currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Applied Materials, Broadcom and Perficient is currently pegged at 19.4%, 15% and 18%, respectively.