Why FireEye Fell Short in Q2
FireEye shares plunged Wednesday after the cybersecurity firm reported its most recent quarterly results late on Tuesday.
When FireEye Inc. (NASDAQ: FEYE) reported its most recent quarterly results after the markets closed on Tuesday, the cybersecurity firm said that it had a net loss of $0.01 per share in and $217.6 million in revenue. Consensus estimates had called for $0.01 in earnings per share (EPS) and $215.2 million in revenue, and the same period of last year reportedly had breakeven earnings and $202.7 million in revenue.
During the most recent quarter, billings increased 13% to $221 million from the second quarter of 2018 and were at the high end of the expected range of $207 million to $222 million
At the same time, gross margin was 72% of revenue, compared to 75% in the year-ago period, and was below the guidance range of 74% to 75%.
Looking ahead to the third quarter, the company expects to see EPS in the range of flat to $0.02 and revenue between $217 million and $221 million, with billings of $245 million to $255 million. Consensus estimates call for $0.10 in EPS and $239.78 million in revenue for the quarter.
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Kevin Mandia, FireEye CEO, commented:
Our billings growth in the second quarter was led by an acceleration in growth in our platform, cloud subscription, and managed services category. Demand was strong for our threat intelligence and managed defense solutions, as well as our strategic Mandiant services. Looking forward, we are excited by the opportunities created by the addition of the Verodin security instrumentation platform to our solutions offering.
Shares of FireEye traded down about 11% Wednesday morning to $14.38, in a 52-week range of $13.85 to $20.61. The consensus price target is $19.58.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
