Published On: Tue, Apr 30th, 2019

FireEye results hit Wall Street’s mark, current quarter forecast to fall short

Share This
Tags


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

April 30, 2019

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

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

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

Cyber security companies have benefited as organizations worldwide ramp up budgets to shield against rising cyber crime. Severe attacks such as a denial-of-service can cripple entire organizations while malware and phishing often target individuals through emails.

Quarterly revenue from subscription and services rose 2.7 percent to $169.9 million, above estimates of $164.4 million while billings 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’s business.

The company’s 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’s total revenue rose 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 its transition to a subscription-based model. Total operating expenses rose 5.5 percent to $202.5 million.

Milpitas, California-based FireEye forecast second-quarter adjusted profit 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 Arjun Panchadar in Bengaluru; Editing by Maju Samuel, Bernard Orr)



Source link

About the Author