FireEye results hit Wall Street’s mark, current quarter forecast is too short

(Reuters) – FireEye Inc on Tuesday posted first-quarter sales and work better than Wall Street expectations, but forecast revenue and earnings for the current quarter below analysts’ estimates.

FILE PHOTO: The FireEye logo is seen outside the company’s offices in Milpitas, California, December 29, 2014. REUTERS/Beck Diefenbach

The company is in the first quarter, revenue edged past estimates, and excluding items, it lost 3 cents per share, in line with the average consensus, according to the IBES data of Refinitiv.

Shares of the cyber security company, rose 1 percent in after-market trading.

Cyber security companies have benefited as organisations all over the world slope of the budgets to protect against the increasing cyber crime. Serious attacks such as a denial-of-service can cripple entire organizations, while malware and phishing scams often target people through e-mails.

Per quarter, the revenue from subscriptions and services increased by 2.7 percent to $169.9 million, above estimates of $164.4 million, while the payments of $182 million was also better than estimates of $176.9 million.

Billings include revenue recognized plus the change in deferred revenue and is an important indicator of the health of a company.

The net loss attributable to shareholders widened to $75.4 million in the first quarter ended March 31, from $71.8 million a year earlier.

On a per-share basis, the company lost 38 cents per share, compared with 39 cents per share last year.

FireEye total sales increased by 5.8 percent to $210.5 million. Analysts on average had expected revenue of $210.2 million.

But the company is tacking on more costs in the transition to a subscription-based model. Total operating expenses increased 5.5% to $202.5 million.

Milpitas, California based FireEye forecast second-quarter adjusted earnings of between 1 cent and 3 cents per share and revenue in the range of $212 million to $216 million.

Analysts on average were expecting a profit of 4 cents per share and revenue of $216 million.

Reporting by Arjuna Panchadar in Bengaluru; Editing by Maju Samuel, Bernard Orr

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