FireEye’s revenue growth in comparison to peers
Previously in this series, we discussed FireEye’s (FEYE) Threat Analytics Platform’s leadership in the SIEM (Security Incident and Event Management) space. FireEye, a key player in the cybersecurity space, has been challenged by low revenue growth and profitability.
In 3Q17, FireEye’s revenues rose ~2.0% to $189.6 million. Let’s see how its peers performed in the latest quarter.
In fiscal 1Q18,[1. fiscal 1Q18 ended October 31, 2017] Palo Alto Networks’ (PANW) revenues rose 27.0% to $489.0 million. In fiscal 2Q18,[2. fiscal 2Q18 ended September 29, 2017] Symantec’s (SYMC) revenues grew 25.0% to ~$1.2 billion.
In fiscal 3Q17,[3. fiscal 3Q17 ended October 28, 2017] Cisco Systems’ (CSCO) revenues rose 8.0% to $12.2 billion. In its 3Q17 results, Fortinet (FTNT) reported $374.4 million in revenues, an increase of 18.2% on a year-over-year basis.
Lower-than-expected guidance weighed on cybersecurity stocks
A majority of these companies saw their stock prices fall when they issued their recent earnings reports and provided lower-than-expected results. Symantec stock fell ~8.0% when the company announced its fiscal 1Q18 results in early November.
FireEye stock fell more than 10.0% when it announced its earnings. Palo Alto Networks, which released its earnings on November 20, 2017, also saw its stock price fall before its earnings announcement.
A common theme around this trend is not the past quarter’s earnings but the outlook for the current quarter. This outlook failed to meet analysts’ expectations, weighing on cybersecurity stocks.