Earnings Results: FireEye reports record earnings, forecasts first $1 billion year as massive hack puts spotlight on security

This post was originally published on this site

FireEye Inc. reported record quarterly results Tuesday and said 2021 might be its first $1 billion year of sales as the priority for cybersecurity ramps up following a massive hack in December.

Back in December, FireEye FEYE, +0.51% revealed it had been hacked a week before the massive cyberattack on SolarWinds Corp.’s SWI, -1.93% IT management software was disclosed that compromised both private-sector and government systems. FireEye believes the sophistication of the attack points to state-sponsored cyberespionage. The heightened awareness of vulnerability is a definite tailwind for the company, FireEye Chief Executive Kevin Mandia told MarketWatch in an interview.

“Pretty much everything we do is going to get lifted in 2021,” Mandia said.

Cloud-based services and intelligence consulting now makes up two-thirds of FireEye’s current business, making 2020 the first full year that cloud-based products have surpasses on-premise legacy products, Mandia said.

“We’ve made the turn,” Mandia told MarketWatch. “It took us four to five years to get to that point.”

FireEye reported a fourth-quarter loss of $39.7 million, or 17 cents a share, compared with a loss of $49.2 million, or 23 cents a share, in the year-ago period. Adjusted earnings, which excludes expenses for stock-based compensation and other items, were a record 12 cents a share, compared with 7 cents a share in the year ago quarter.

Revenue rose to $247.5 million from $235.1 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of 10 cents a share on revenue of $240.1 million, based on FireEye’s forecast of 9 cents to 11 cents a share on revenue of $237 million to $241 million.

FireEye expects first-quarter adjusted earnings of 5 cents to 7 cents a share on revenue of $235 million to $238 million, while analysts had forecast earnings of 7 cents a share on revenue of $233.7 million.

For the year, FireEye expects adjusted earnings of 35 cents to 37 cents a share on revenue of $990 million to $1.01 billion. Analysts estimate earnings of 35 cents a share on revenue of $987.7 million.

Add Comment