FireEye (FEYE) Stock | “Burned” On Earnings


FireEye, Inc (NASDAQ: FEYE)


FireEye, Inc. Earnings Report

FEYE posted sales of $147.2 million or -$0.41 per share versus what analyst estimated of -$0.48 on sales of $142.2 million. Despite posting better than expected earnings, FEYE shares are trading down premarket on news that the CFO, Michael Sheridan, is leaving for a private tech company. For the interim, vice president of finance Frank Verdecanna will take over as chief financial officer while they look externally for a new CFO. Frank has been with FEYE since November 2012 and formerly served as CFO for Apptera, a mobile communications and advertising company. In the long run, I don’t think this will have a major impact on the stock price especially after what Chairman and CEO Dave DeWalt stated in the earnings call,

“Q2, 2015 was one of the strongest quarters the company had ever. The combination of accelerating growth, increasing market share, expanding portfolio of products, and now positive cash flow from operations really led to historic milestones for the company. The power of our virtual machine platform of now network endpoint and cloud coupled with our powerful Mandiant services continues to drive a lot of new opportunities for the company, and really best-in-class growth across the security industries.”

Chief Financial Officer Michael Sheridan also had some positive comments in the conference call:

“Our results this quarter demonstrate the strength of our business model to generate operating and free cash flow. We expect our operating cash flows to be within $10 million of break-even for 2015, more than a year earlier than our most optimistic targets.”

FEYE also provided guidance for the rest of 2015 based on current market conditions and expectations. They are looking for annual revenue to range between $630 – $645 million or $1.70 – $1.80 loss per share.


FEYE Technicals


FEYE has been having a great 2015 so far and based off the earnings they just released, they still have plenty of room to go. After coming off a 2015 high of $55.33, FEYE has trended back down towards the mid $40 range where it has been holding the past month. After today’s close of $44.93, FEYE is up 40% for the year, which is down from the 52 week high, but still a strong performer so far in 2015. Key resistance levels look to be at the $50.00 and $51.00 with support at the $44.00 and $45.00 price range.

Analyst covering FEYE have a $51.80 price target with 14 analyst maintaining a buy rating and 17 recommending a hold rating.


Company Profile

Founded in 2004 by Ashar Aziz and headquartered in Milpitas, California, FireEye, Inc focuses on providing real-time automated threat forensics and dynamic malware protection against serious cyber threats and attacks.  Their main target includes protecting networks, email, mobile, content files, analytics and forensics. FireEye, Inc is also the first cyber security company awarded certification by the Department of Homeland Security. Their direct competitors are Cisco Systems (CSCO), Juniper Networks (JNPR) and Sourcefire, Inc.