FireEye’s 3Q15 Results Show Slow Growth



FireEye’s revenues fail to meet analysts’ expectations

On November 4, 2015, FireEye (FEYE) was the latest company in the cybersecurity space to announce its fiscal 3Q15 results. Another player, Fortinet (FTNT)recently posted its fiscal 3Q15 earnings on October 22, 2015.

FireEye reported revenues and a non-GAAP (generally accepted accounting principles) loss per share of $165.6 million and $0.37 per share, respectively. The company’s $165.6 million in revenues failed to meet analyst expectations by $1.5 million in 3Q15. However, its loss per share of $0.37 per share beat analysts’ expectations by $0.08 per share.

Article continues below advertisement

FireEye’s revenue and billing posted double-digit growth

Though the company failed to meet analysts’ expectations, its $165.6 million revenues in fiscal 3Q15 grew by 45% on a YoY (year-over-year) basis. The company posted billings of $210.6 million in 3Q15, an increase of 28% on a YoY basis.

Lowered 4Q15 and 2015 revenue and billings guidance

The company failed to meet analysts’ revenue and billings expectations and it lowered its guidance. In 4Q15, the company now expects revenue and loss per share in the range of $182–$190 million and $0.36–$0.38, respectively. The previous consensus estimates for revenues and loss per share were $200.8 million and $0.40 per share, respectively.

Barracuda Networks (CUDA), a cybersecurity player, announced its fiscal 2Q16 earnings on September 29, 2015. It was also forced to slash its billings guidance due to currency fluctuations. For full-year 2015, FireEye lowered its guidance and now expects $620–628 million revenues in 2015, compared with the previous guidance of $630–645 million.

The PureFunds ISE Cyber Security ETF (HACK) has a portfolio of 32 stocks. It invests 5.0% of its holdings in FireEye, 4.8% in Qualys (QLYS), and 4.6% in Palo Alto Networks (PANW).


More From Market Realist