FireEye Inc (NASDAQ: FEYE) is having an overwhelmingly strong day in the market today, and for good reason. The company reported its earnings for the fourth quarter, blowing away expectations. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about what we saw from earnings, what we’re seeing from FEYE as a result, and what we’ll be watching for ahead.
FEYE Gains On Strong Earnings
As mentioned above, FireEye is having an overwhelmingly strong day in the market today after reporting its earnings for the fourth quarter after the closing bell last night. Here’s what we saw from the report:
- Earnings Per Share – In terms of earnings per share, FEYE did overwhelmingly well. During the fourth quarter, analysts expected that the company would generate a loss of $0.01 per share. However, the company actually reported earnings in the amount of $0.01 per share.
- Revenue – Revenue also proved to be overwhelmingly positive for the company. During the fourth quarter, analysts expected that FEYE would generate revenue in the amount of $193.62 million. However, the company actually reported revenue in the amount of $202.3 million, blowing expectations out of the water.
- Guidance – Finally, FireEye didn’t disappoint when it comes to guidance. For the fiscal 2018 year, the company is expecting to earn up to $0.04 per share on revenue between $815 million and $825 million. Currently, analysts expect that the company will generate a loss of $0.02 per share on revenue of $800.1 million.
In a statement, Kevin Mandia, CEO at FEYE, had the following to offer:
We achieved strong results across all key financial metrics in the fourth quarter delivered against our year-long commitment of billings and revenue growth, non-GAAP operating profitability, and positive operating and free cash flow by the fourth quarter… We delivered year-over-year and sequential growth in every major product group and geographic region, and we closed a record number of transactions greater than $1 million.
We are building FireEye for the long-term, and we begin 2018 with a solid foundation for future growth and increased profitability… The combination of our expertise on the front lines, our threat intelligence, and our machine-generated cyber attack data gives us great visibility into the threat environment than any other security company. I believe this is a sustainable competitive advantage for us. We leverage our unique insights in our continuous innovation cycle that allows us to rapidly adapt our solutions, deliver expertise on demand, and remain relevant for our customers as the threat landscape evolves.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. First and foremost, FEYE delivered its first quarterly profit. On top of that, expectations with regard to revenue and earnings were smashed while guidance is well ahead of expectations as well. So, it’s no surprise to see that the stock is making a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:52), FEYE is trading at $15.66 per share after a gain of $1.54 per share or 10.91% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on FEYE. In particular, we’re interested in following the continued growth of the company as it finally breaks into profitability. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!