NEW YORK (TheStreet) -- FireEye (FEYE) - Get FireEye, Inc. Report shares are up 0.36% to $33.18 in trading on Monday after Sony (SNE) - Get Sony Corp. Report announced that it was hiring the cyber security firm to clean up the mess left by its high profile hack last week.
Sony's servers were hacked by the North Korean government last week because of the pending release of the comedy film "The Interview", in which the country's leader Kim Jong Un is assassinated by characters disguising themselves as interviewers.
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Hackers raided the company's servers and released Internal emails and memos that were an embarrassment to Sony. The company pulled the film is response to the attack after the hackers said that they would release even more sensitive information if the company did not pull the movie.
FireEye makes cyber security software that runs along multiple platforms including email, files and web servers. FireEye shares traded up in its last three sessions, 3% Wednesday, 8% Thursday and 6% Friday.
TheStreet Ratings team rates FIREEYE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIREEYE INC (FEYE) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FIREEYE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 362.2% in earnings (-$2.08 versus -$0.45).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 135.7% when compared to the same quarter one year ago, falling from -$50.93 million to -$120.03 million.
- The share price of FIREEYE INC has not done very well: it is down 21.50% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter.
- Compared to other companies in the Software industry and the overall market, FIREEYE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for FIREEYE INC is currently very high, coming in at 82.47%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -105.09% is in-line with the industry average.
- You can view the full analysis from the report here: FEYE Ratings Report