FireEye's Q2 Results On Deck, But All Eyes On Consolidation In Cybersecurity
Investors of FireEye Inc (NASDAQ: FEYE) appear to be less than optimistic about the company's revenue meeting expectations ahead of the second quarter results announcement. Wedbush analyst, Steve Koenig, expects revenue to disappoint, citing lag in product sales. The stock is trading in the red, reflecting investors' negative sentiments.
In the first quarter, the company failed to deliver the expected revenue, and the lower-than-estimated forecast resulted in shares trading lower by as much as 19 percent the following day.
Previously, after the first-quarter results announcements, the stock rose approximately 7.4 percent despite losing 19 percent in the following day.
One of the reasons for the tepid outlook could be the mixed demand for the company's product, as FireEye is facing pressure from cheaper options in the cybersecurity market.
However, the security firm's chairman and CEO David DeWalt expressed confidence earlier that its platform expansions would create incremental opportunities. The company extended its MVX detection engine to public and private clouds and unveiled Security Orchestrator and virtual MVX appliances. However, the crux of investor concern is whether the company can make the difference between revenue beat and miss.
At time of releasing first-quarter numbers, FireEye guided revenue to be $178–$185 million in the second quarter. The company also estimated an adjusted loss of $0.38–$0.40 a share.
Street analysts expect a loss of $0.39 a share on revenue of $181.67 million for the same period. This suggests that the mid-point is within the analysts' estimate.
As far as the bottom line is concerned, the last four quarters' performances suggested that investors will not be surprised by another beat.
The company will release results after the market closes on August 4; investors could access a live audio webcast of the call through its website here.
Currently, the stock is trading down by 2.72 percent at $16.80.
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