What happened
FireEye (FEYE +0.00%) underperformed a weak market last month. The stock declined 20% compared to a 12.5% dip in the S&P 500, according to data provided by S&P Global Market Intelligence.
The slump expanded the gap between the software specialist and the wider market, with shares down 40% so far in 2020.
Image source: Getty Images.
So what
FireEye joined its fellow cybersecurity stocks in diving last month, mainly on concerns that its supply chain would be disrupted while COVID-19 spread through China and other parts of Asia. Investors are further worried about how any economic slump, particularly in key markets such as the U.S., might affect its business. In early February, the company reported surprisingly strong sales for fiscal 2019, but it also noted that contract lengths have been shortening and billings growth slowed.
Now what
The cybersecurity specialist will post first-quarter results on April 28, in an announcement that may include revisions to its broader outlook. As it stood before the COVID-19 outbreak, FireEye's 2020 targets called for sales of $940 million and adjusted operating margin of between 5% and 6%.
CEO Kevin Mandia and his team will update those goals later this month, potentially by lowering them or withdrawing guidance altogether due to uncertainty around global economic conditions.
