What FireEye's Record Quarter Means in the Age of COVID-19

FireEye Inc. (NASDAQ: FEYE) released its most recent quarterly results after the markets closed on Tuesday. This cybersecurity firm saw record numbers this quarter as COVID-19 has placed much more emphasis on the industry.

The company reported record numbers on both the top and bottom lines. FireEye said that it had $0.09 in earnings per share (EPS) and $230 million in revenue. Analysts were calling for a net loss of $0.02 per share on revenues of $214.8 million. The second quarter of last year reportedly had a net loss of $0.01 per share on $218 million in revenue.

At the same time, the company notched an all-time record annualized recurring revenue of $598 million, an increase of 8% compared to the end of the second quarter of 2019.

FireEye saw a continued shift to cloud-based solutions as Platform, cloud subscription and managed services annualized recurring revenue increased 27% to $302.23 million. This eclipsed Product and related subscription and support annualized recurring revenue for the first time, which came in at $295.85 million.

In terms of the quarterly numbers, Product subscription and support revenues came in at $177.3 million and Professional services revenues were $52.6 million.

Looking ahead to the third quarter, FireEye expects to see EPS in the range of $0.06 to $0.08 and revenue between $225 million and $229 million. Consensus estimates are calling for $0.02 in EPS and $220.11 million in revenue.

For the full year, the company anticipates EPS of $0.22 to $0.26 and revenue of $905 million to $925 million. Analysts anticipate $0.05 in EPS and $889.87 million in revenue.

FireEye traded up over 14% on Wednesday to $15.31, in a 52-week range of $7.54 to $18.34. The consensus price target is $13.87.