Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Shares of FireEye Are Jumping Today

By Chris Neiger - Jul 29, 2020 at 11:41AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company reported better-than-expected second-quarter results.

What happened

Shares of FireEye (MNDT -0.13%) were skyrocketing this morning after the company outpaced Wall Street's expectations for the second quarter. 

As of 11:21 a.m. EDT, FireEye's stock was up 18%.

So what

FireEye released its second-quarter results yesterday. The company's revenue climbed 6% year over year to $230 million, outpacing the consensus estimate by analysts who were expecting $214.6 million. Most importantly, FireEye smashed Wall Street's consensus estimate of an adjusted loss per share of $0.02 and instead reported earnings of $0.09 per share.

A white line graph on a blue background.

Image source: Getty Images.

"The steps we have taken to accelerate our transformation to a security-as-a-service company resulted in record second-quarter revenue and our highest ever non-GAAP profitability," FireEye's chief executive officer Kevin Mandia said in a company press release. "Growing adoption of our validation platform, cloud-based security products and intelligence solutions, combined with improved net retention in our appliance-based security controls business, drove annualized recurring revenue to record levels."

FireEye's share price has been anything but stable in 2020. Even after today's impressive gains, the company's stock is still down 4.5% since the beginning of this year.

Now what 

FireEye's management gave guidance for the third quarter, with revenue expected to be between $225 million and $229 million. Additionally, adjusted earnings per share for the quarter are in the range of $0.06 to $0.08. Management also said that for the full-year 2020, revenue will be $915 million and adjusted earnings will reach $0.24 per share, both at the midpoint.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Mandiant, Inc. Stock Quote
Mandiant, Inc.
MNDT
$22.78 (-0.13%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
377%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.