Stock Update (NASDAQ:FEYE): FireEye Inc Updates Business Outlook For Fiscal Year 2016

FireEye Inc (NASDAQ:FEYE), the leader at stopping today’s advanced cyber attacks, today updated its business outlook for fiscal year 2016 in conjunction with the company’s 2016 Analyst Briefing.

For the 2016 fiscal year, the company is maintaining its outlook for non-GAAP billings, revenue and operating cash flow, and is providing an updated outlook for non-GAAP operating margin, non-GAAP net loss per share, and capital expenditures.

Consistent with the guidance provided by the company on February 11, 2016, the company expects:

  • Total revenue in the range of $815 to $845 million.
  • Non-GAAP billings in the range of $975 to $1,055 million.
  • Positive cash flow from operations in the range of $70 to $80 million.

With respect to non-GAAP operating margin, non-GAAP net loss per share and capital expenditures, the company now expects:

  • Non-GAAP operating margin in the range of negative 21 to negative 23 percent of revenue, versus previous guidance of negative 22 to negative 24 percent of revenue.
  • Non-GAAP net loss per share of $1.20 to $1.27, versus previous guidance of $1.25 to $1.32.
  • Capital expenditures on property and equipment of approximately $35 million, versus previous guidance of approximately $50 million.

Non-GAAP net loss per share for 2016 assumes interest expense of $12.0 million associated with the company’s convertible senior notes, income taxes between $4.0 and $8.0 million, and shares outstanding of approximately 162 million.

Guidance for non-GAAP financial measures excludes stock based compensation, amortization of intangible assets, non-cash interest expense related to the company’s convertible senior notes, and other non-recurring expenses. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis as a result of the uncertainty regarding, and the potential variability of, the amounts of stock-based compensation expense, amortization of intangible assets, and other non-recurring expenses that may be incurred in the future. (Original Source)

Shares of FireEye closed yesterday at $18.69. FEYE has a 1-year high of $55.33 and a 1-year low of $11.35. The stock’s 50-day moving average is $14.81 and its 200-day moving average is $24.33.

On the ratings front, FireEye has been the subject of a number of recent research reports. In a report issued on March 3, Deutsche Bank analyst Karl Keirstead maintained a Hold rating on FEYE, with a price target of $15, which represents a potential downside of 19.7% from where the stock is currently trading. Separately, on February 12, Wedbush’s Steven Koenig reiterated a Hold rating on the stock and has a price target of $17.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Karl Keirstead and Steven Koenig have a total average return of -1.2% and -2.2% respectively. Keirstead has a success rate of 41.4% and is ranked #2724 out of 3698 analysts, while Koenig has a success rate of 41.9% and is ranked #2810.

Overall, 7 research analysts have assigned a Hold rating and 9 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $25.10 which is 34.3% above where the stock closed yesterday.

FireEye Inc provides cybersecurity solution for detecting, preventing and resolving cyber-attacks that evade legacy signature-based security products. Its solutions include traditional and next-generation firewalls, IPS, anti-virus, and gateways.


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