FireEye Higher After Reporting Better-Than-Expected Results

FireEye  (FEYE) - Get Report shares rose after the cybersecurity-solutions provider reported better-than-expected third-quarter revenue and adjusted net income.

The Milpitas, Calif., company reported a GAAP loss per share of 17 cents a share, narrowing from a loss of 31 cents in the year-earlier quarter. 

On an adjusted basis, third-quarter net income was 11 cents a share against 2 cents a year earlier.

Revenue advanced 5.6% to $238.5 million from $225.9 million.

A survey of analysts by FactSet produced consensus estimates of a net loss of 16 cents a share, or an adjusted profit of 7 cents, on revenue of $227.7 million.

GAAP gross-profit margin was flat year-over-year at 65%. Cash flow from operations jumped to $33 million from $18 million.

For the fourth quarter, FireEye expects adjusted earnings of 9 cents to 11 cents a share on revenue of $237 million to $241 million. Analysts surveyed by FactSet are looking for an adjusted profit of a dime a share.

A month ago, FireEye joined Microsoft Intelligent Security Association, a collaboration among security-tech companies to provide protection to jointly service customers.

At last check, FireEye shares were trading up 5.3% at $14.84. They closed the regular session on Tuesday off 0.4% at $14.09. The stock has almost doubled off its 52-week low of $7.54, set in mid-March.

The Wall Street Journal reported in August that during a weak economy, cybersecurity providers were generating strong results. 

The pandemic forced companies to shift staff and executives to remote locations, opening them to new cyberthreats and requiring identity-management and other tools that remote work requires, the paper reported.