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FireEye Inc. reported record financial results and an increased annual forecast Tuesday, as the cybersecurity company managed to stem sales declines in its legacy products while building out cloud sales amid an increase in online attacks.
FireEye FEYE, -0.42% reported a third-quarter loss of $39.1 million, or 17 cents a share, compared with a loss of $65.5 million, or 31 cents a share, in the year-ago period. Adjusted earnings, which excludes expenses for stock-based compensation and other items, were 11 cents a share, topping the record the company set in the previous quarter.
Revenue rose to $238.5 million from $225.9 million in the year-ago quarter, driven by a stabilization of declines in the company’s on-premise business and continued adoption of its cloud-based products. Analysts surveyed by FactSet had forecast earnings of 7 cents a share on revenue of $227.7 million.
Shares surged 8% in after-hours trading, following a 0.4% decline in the regular session to close at $14.09. FireEye shares are down 15% for the year, versus a 5% gain in the S&P 500 index SPX, -0.30%.
The threat level from cybercriminals remains high and FireEye is running at capacity, FireEye Chief Executive Kevin Mandia told MarketWatch in an interview. That’s not just due to the COVID-19 pandemic, as the election year and geopolitical tensions could be contributing factors, he said.
“There’s an escalation of cyberattacks right now,” Mandia told MarketWatch in an interview. “Whenever that happens, we get busy.”
“Bottom line, it’s a multitude of factors,” Mandia said.
FireEye expects adjusted earnings of 9 cents to 11 cents a share on revenue of $237 million to $241 million, while analysts had forecast earnings of 10 cents a share on revenue of $236.6 million.
For the year, FireEye expects adjusted earnings of 28 cents to 30 cents a share on revenue of $930 million to $934 million, up from its previous forecast of 22 cents to 26 cents a share on revenue of $905 million to $925 million. Analysts estimate earnings of 25 cents a share on revenue of $919.1 million.
