FireEye, Inc. | $FEYE Stock | Shares Stumble On Fourth Quarter Loss and Lower than Expected Revenue


FireEye, Inc. (NASDAQ: FEYE)



FireEye, Inc. (FEYE), a cybersecurity solutions company yesterday reported their fiscal year 2016 fourth quarter financial results. FireEye reported a fourth quarter loss of $61.5 million. FireEye reported fourth quarter adjusted earnings of $0.03 per share which beat analyst expectations of a loss of $0.16 per share. FireEye reported fourth quarter revenues of 184.7 million which fell short of analyst expectations of $191.9 million.


FireEye, Inc. CEO’s Comments

“Since mid-2016 we have focused on two strategic initiatives — rightsizing our cost structure and evolving our product portfolio — and we made great progress on both fronts in the fourth quarter,” said Kevin Mandia, FireEye chief executive officer. “Non-GAAP operating losses narrowed by more than $50 million compared to the fourth quarter of 2015, and we generated positive operating cash flow in the fourth quarter. We are better positioned as a company today, with a solid financial foundation, more efficient operations, and expanded and updated product offerings. We will remain focused on our mission to relentlessly protect our customers as we continue to execute on our priorities in 2017.”

“We believe the innovations we introduced in the second half of 2016, together with the announcement of our Helix platform in November, will enable FireEye to transform security operations and lower security cost of ownership for organizations of all sizes,” added Mandia. “I believe that FireEye’s intense and dedicated pursuit of profitability and innovation will result in growth, enable us to better fulfill our mission to our customers, and allow us to provide the greatest value to our shareholders over time.”  


FEYE Technical Analysis


FEYE opened trading yesterday at $13.24 which was up from the previous day’s trading close of $13.15. Shares closed trading yesterday at $12.97 and spiked down after market to $10.65, equivalent to a 18% decrease from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as with the spike down FEYE is now trading at all time lows.

Taking a closer look at the daily chart we can see that before the spike down FEYE had already been in an overall downward trend dating back to July 28th, 2016 when it traded at $18.09. FEYE has a float of 153.3 million shares and traded 1.44 times the normal daily trading volume on Thursday. For trading purposes, I would like to see FEYE open trading on Friday below $11.40 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

FireEye, Inc. provides cybersecurity solutions for detecting, preventing, analyzing, and resolving cyber-attacks. The company offers vector-specific appliance solutions that provide threat protection from network to endpoint for inbound and outbound network traffic that may contain sensitive information.

It also offers Central Management System that provides cross-enterprise threat data correlation to identify and block attacks across multiple attack vectors; and Threat Analytics Platform to identify and respond to cyber threats by correlating enterprise-generated security event data from any security product with real-time threat intelligence, as well as Malware Analysis System to manually execute and inspect advanced malware, zero-day, and other advanced cyber-attacks embedded in files, email attachments, and Web objects.

In addition, the company offers Network Forensics Platform that helps in detecting threats and view specific packets and sessions before, during, and after the attack to confirm what may have triggered a malware download or callback; Investigation Analysis System, a centralized analytical interface to the Network Forensics Platform; and Mandiant Intelligent Response that enables remote investigation of endpoints and allows security teams to collect targeted forensic data to identify attacker behavior, tools, and techniques. Further, it provides cloud-based subscription services; Security-as-a-Service; and incident response, compromise assessments, and related consulting, as well as training and professional, and customer support and maintenance services.

FireEye, Inc. provides its products and services through distributors, resellers, and strategic partners in the United States, the Asia Pacific, Japan, Europe, the Middle East, Africa, and others. The company was formerly known as NetForts, Inc. and changed its name to FireEye, Inc. in September 2005. FireEye, Inc. was founded in 2004 and is headquartered in Milpitas, California.  Yahoo Finance