The Milpitas, Calif., company's shares at last check dropped 15% to $17.
On June 2 Fireye said it definitively agreed to sell the FireEye Products business, including the FireEye name, to a group led by the Palo Alto, Calif., investment firm Symphony Technology Group for $1.2 billion cash.
The move would enable the company "to unlock" and build its "high-growth Mandiant Solutions business," Chief Executive Kevin Mandia had said in a statement.
Barclays maintained its underweight rating and $20 price target on the company.
FireEye's second-quarter report showed that "like for like billings were better," but the company's spin off plans are concerning, Barclays said.
The company's guidance for annual recurring revenue "is for acceleration to mid-20% growth in [the second half] from 19% in [the second quarter], making this a show-me story."
Analysts at Morgan Stanley affirmed an equal-weight rating and $19 price target while calling FireEye's results "underwhelming." Investors "were likely expecting an acceleration vs. 20% topline compounded annual growth rate over the past couple of years."
Piper Sandler has a neutral rating and $23 price target. Its analysts said the results were mostly in line, though the company saw "continued acceleration in Mandiant services amid a rapidly evolving threat environment."
Truist Securities maintained a hold rating and $17 price target, saying "multiple factors clouded the outlook for the remaining company in both the short and long term."
The firm says that while it is looking for better visibility, "we like FireEye's transformation from a breach response company to a more analytically oriented security platform."
Baird downgraded the company to neutral.
FireEye reported adjusted earnings of 9 cents a share on revenue of $113.9 million. Revenue from combined continuing and discontinued operations was $248 million, up 8% year over year.
Analysts surveyed by FactSet were expecting earnings of 9 cents a share on revenue of $248.9 million.
For the third quarter, the company expects revenue between $118 million and $122 million. FirEye is expecting earnings of 5 cents to 7 cents a share.