FireEye, Inc. (NasdaqGS:FEYE) is scheduled to report Q3 earnings results after markets close for trading on October 27, 2020.
The company is expected to report earnings of $0.07/share on revenue of $227.7 million. The consensus earnings per share (EPS) of $0.07/share is based on a poll of 18 analysts and represents a growth in eps of 258.5% over the same quarter last year, when the company reported earnings of $0.02/share.
The revenue forecast of $227.7 million based on a poll of 15 analysts implies a year-over-year (YoY) growth in revenue of 0.8%. Last year the company reported $225.9 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $227.66 | $225.91 | 0.8% |
| EPS | $0.07 | $0.02 | 258.5% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 1 quarter.
What are your expectations from FireEye, Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | -$0.02 | $0.09 | 583.6% | Beat |
| Q1, 2020 | -$0.04 | -$0.02 | 51.5% | Beat |
| Q4, 2019 | $0.04 | $0.07 | 81.4% | Beat |
| Q3, 2019 | $0.01 | $0.02 | 107.9% | Beat |
| Q2, 2019 | $0.01 | -$0.01 | 215.3% | Missed |
| Q1, 2019 | -$0.03 | -$0.03 | 0% | Met |
| Q4, 2018 | $0.05 | $0.06 | 15.4% | Beat |
| Q3, 2018 | $0.02 | $0.06 | 183.7% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 19.8%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| July 28, 2020 | $13.22 | $15.84 | 19.8% | Increase |
| April 28, 2020 | $11.52 | $11.04 | −4.2% | Decline |
| February 5, 2020 | $16.04 | $15.71 | −2.1% | Decline |
| October 29, 2019 | $16.24 | $15.39 | −5.2% | Decline |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.01, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.01 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
FireEye, Inc. is currently trading at $14/share, down −0.1% for the day. The company is trading at approximately 76.3% of its 52-week high of $18.34/share. The company’s stock price is down −11.6% since the last earnings report and down −0.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 60.59 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −12.82 and a forward P/E multiple of 55.79.
FireEye, Inc.’s current share price also implies a price-to-book (P/B) multiple of 4.74. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $14 |
| P/E Ratio | −12.8x |
| P/E Ratio (Fwd) | 55.8x |
| PEG Ratio | −1.7 |
| Total Debt / Total Capital | 24.6% |
| Levered Free Cash Flow | $13.326 million |
| EV / EBITDA | −41.6x |
FireEye, Inc. is a mid-cap stock with a market capitalization of $3.132 billion and a total enterprise value of $3.24 billion. The company operates in the Information Technology sector and the Software industry.
FireEye, Inc. provides cybersecurity solutions to prepare for, prevent, investigate, respond to, and remediate cyber-attacks in organizations. The company provides network, email, endpoint, and cloud security solutions, as well as customer support and maintenance services. It also offers Helix Security Platform, a cloud-hosted security platform; Security Validation Platform against cyber attacks; Dynamic Threat Intelligence cloud, a bi-directional cloud-based service; and Mandiant Threat Intelligence that offers subscriptions to threat intelligence reports to organizations for defending cyber threats. In addition, the company offers Mandiant Managed Defense, a technology-enabled managed detection and response service; Mandiant Digital Threat Monitoring, which analyzes content on the open and dark web for credential leakage, public data exposure, and other potential threats; and Mandiant Expertise-on-Demand, a prepaid subscription that provides access to the company’s threat intelligence and expertise as microservices. Further, it provides incident response, response readiness and cyber insurance assessments, red and purple team assessments, and other strategic security services; cyber threat intelligence and defense center services; and education services. The company serves telecommunications providers, financial services entities, Internet search engines, social networking sites, stock exchanges, electrical grid operators, networking vendors, oil and gas companies, healthcare and pharmaceutical companies, and governmental agencies. FireEye, Inc. offers its products and services through distributors, resellers, and strategic partners in the United States, the Asia Pacific, Europe, the Middle East, Africa, and Japan. FireEye, Inc. has strategic partnership with Athena Alliance. 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.
