FireEye raises 2017 top-line guidance
As if to disregard the fierce competition it faces in the cybersecurity market, FireEye (FEYE) provided a rosy outlook for the current quarter and the full year. FireEye is expecting 3Q17 (September quarter) revenue in the range of $183 million to $189 million. The company generated revenue of $186.4 million for the same quarter last year.
For the full-year 2017, FireEye raised its top-line outlook to a range of $734 million to $746 million. Its original guidance was for $724 million to $736 million. FireEye generated revenue of $714.1 million last year.
The above chart shows the trend in FireEye’s top line over the last four years. If the company attains the new top-line projections for this year, not only will it register impressive top-line growth, but it will have also bested consensus estimates. Analysts are expecting 2017 revenue of $730.6 million.
Source of FireEye optimism
These rosy projections show FireEye management’s optimism. What’s behind this optimism? The management is betting on continued prudent cost controls and investment in innovation to drive improving financial performance. As part of its efficiency drive, FireEye said it aims to cuts its operating expenses by 20% in 2Q17, leading to bottom-line improvement. The company also continues to invest in creating new products and services and improving existing ones such as its Helix platform.