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FireEye (FEYE) to Report Q2 Earnings: What's in the Offing?
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FireEye, Inc. is scheduled to report second-quarter 2019 results on Jul 30.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 80%.
In the last reported quarter, the company reported non-GAAP loss of 3 cents per share, 25% narrower year over year. The bottom line matched the Zacks Consensus Estimate.
Revenues totaled $211 million, which increased 6% and outpaced the consensus estimate of $210 million.
For the second quarter, FireEye anticipates revenues to be between $212 million and $216 million (mid-point $214 million).
The Zacks Consensus Estimate is currently pegged at $215.2 million, indicating growth of 6.17% from the year-ago reported number. However, the figure is higher than the mid-point of management’s guided range.
The company expects non-GAAP earnings per share to range from a penny to 3 cents. The consensus estimate for second-quarter earnings is pegged at a penny.
Let's see how things are shaping up for the upcoming announcement.
FireEye’s upcoming quarterly results are expected to benefit significantly from solid demand of its products, given the healthy environment of the global security market. Strong traction in email security, network security and Endpoint security solutions, and continued focus on the Helix platform bode well for the company.
The introduction of subscription pricing model for network, email and Endpoint security is helping FireEye witness an increase in subscription. This, in turn, is likely to drive its second-quarter top line.
In the last reported quarter, FireEye launched Expertise On Demand and added click to chat capabilities into the Helix platform. This led to increased adoption of Helix and a rise in the number of third-party alerts added to workflows. This feature is likely to have attracted customers in the to-be-reported quarter as well.
Moreover, strong traction in Mandiant Professional Services revenues is expected to boost the upcoming results.
The addition of local infrastructure in Japan to provide cloud email security solution for data residency concerns to customers is driving strong adoption, making the company optimistic about its prospects for the second quarter and throughout the year.
Moreover, FireEye’s engagements with major cloud providers like Microsoft (MSFT - Free Report) Azure, Amazon’s (AMZN - Free Report) cloud arm AWS, Alphabet’s (GOOGL - Free Report) Google and Oracle Cloud to develop solutions bode well.
Further, a sequential decrease in operating expenses of $6-$7 million, primarily related to lower payroll-related expenses and less events costs in the second quarter is expected to be a tailwind for margins.
However, the second quarter is not expected to have witnessed any $10 million plus transactions. This is likely to lead to tough year-over-year comparison for cloud subscriptions and managed services revenues.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
FireEye (FEYE) to Report Q2 Earnings: What's in the Offing?
FireEye, Inc. is scheduled to report second-quarter 2019 results on Jul 30.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 80%.
In the last reported quarter, the company reported non-GAAP loss of 3 cents per share, 25% narrower year over year. The bottom line matched the Zacks Consensus Estimate.
Revenues totaled $211 million, which increased 6% and outpaced the consensus estimate of $210 million.
For the second quarter, FireEye anticipates revenues to be between $212 million and $216 million (mid-point $214 million).
The Zacks Consensus Estimate is currently pegged at $215.2 million, indicating growth of 6.17% from the year-ago reported number. However, the figure is higher than the mid-point of management’s guided range.
The company expects non-GAAP earnings per share to range from a penny to 3 cents. The consensus estimate for second-quarter earnings is pegged at a penny.
Let's see how things are shaping up for the upcoming announcement.
FireEye, Inc. Price and EPS Surprise
FireEye, Inc. price-eps-surprise | FireEye, Inc. Quote
Factors at Play
FireEye’s upcoming quarterly results are expected to benefit significantly from solid demand of its products, given the healthy environment of the global security market. Strong traction in email security, network security and Endpoint security solutions, and continued focus on the Helix platform bode well for the company.
The introduction of subscription pricing model for network, email and Endpoint security is helping FireEye witness an increase in subscription. This, in turn, is likely to drive its second-quarter top line.
In the last reported quarter, FireEye launched Expertise On Demand and added click to chat capabilities into the Helix platform. This led to increased adoption of Helix and a rise in the number of third-party alerts added to workflows. This feature is likely to have attracted customers in the to-be-reported quarter as well.
Moreover, strong traction in Mandiant Professional Services revenues is expected to boost the upcoming results.
The addition of local infrastructure in Japan to provide cloud email security solution for data residency concerns to customers is driving strong adoption, making the company optimistic about its prospects for the second quarter and throughout the year.
Moreover, FireEye’s engagements with major cloud providers like Microsoft (MSFT - Free Report) Azure, Amazon’s (AMZN - Free Report) cloud arm AWS, Alphabet’s (GOOGL - Free Report) Google and Oracle Cloud to develop solutions bode well.
Further, a sequential decrease in operating expenses of $6-$7 million, primarily related to lower payroll-related expenses and less events costs in the second quarter is expected to be a tailwind for margins.
However, the second quarter is not expected to have witnessed any $10 million plus transactions. This is likely to lead to tough year-over-year comparison for cloud subscriptions and managed services revenues.
FireEye currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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