Market Overview

FireEye's Earnings: A Preview

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On Tuesday, October 27, FireEye (NASDAQ: FEYE) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see FireEye reporting earnings of $0.07 per share on sales of $227.67 million. In the same quarter last year, FireEye reported EPS of $0.02 on revenue of $225.91 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be up 250.0%. Revenue would be up 0.78% from the same quarter last year. FireEye's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.02 -0.04 0.04 0.01
EPS Actual 0.09 -0.02 0.07 0.02
Revenue Estimate 214.77 M 221.28 M 226.42 M 219.80 M
Revenue Actual 229.90 M 224.72 M 235.09 M 225.91 M

Stock Performance

Shares of FireEye were trading at $14.24 as of October 23. Over the last 52-week period, shares are down 8.59%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. FireEye is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings