FireEye (FEYE) Stock Crumbles On Disappointing Earnings, GoPro (GPRO) Posts Steep Loss

GoPro GPRO Stock

FireEye Inc (NASDAQ:FEYE) stock hit an all-time low in mid-day trading Friday — losing nearly 20% intraday to $10.60 a share — after the cybersecurity firm reported another disappointing quarter.

FireEye posted 4Q16 earnings of ($0.03) per share on revenues of $184.7 million, flat from the same year-ago period. Analysts were expecting EPS of ($0.16) on revenues of $191.02 million. The cloud-based security specialist also issued a weak outlook for the current quarter on both billings and revenue, guiding 1Q17 revenue of $160 million to $166 million, well below analysts’ consensus estimates for $176.6 million. Billings fell 14% year over year, to $221.8 million. That compares to FireEye’s own guidance of $230 million to $250 million. The management also gave its bottom line range of ($0.28)-($0.26) per share, against adjusted net loss projections of $0.24 per share.

On a more concerning note, the company did not provide full-year 2017 guidance. It did announce however, that CFO, Mike Berry and David DeWalt, FireEye’s former CEO and most recently executive chairman of the board, have resigned from the Milpitas, Calif.-based firm.

Following disappointing Q4 revenue results and guidance, Piper Jaffray downgraded FireEye stock to ‘Neutral’ from ‘Overweight’. Stifel Research also lowered their FEYE target price to $17 from $20 noting that a variety of factors, including “ongoing transitions within the salesforce and a continued push away from traditional appliance sales in favor of recurring subscriptions continue” to pressure the company’s execution.

A big and persisting problem for FireEye — whose stock is nearly 88% below its all-time high of $85 a share in 2014 — is that the co. has never posted a profit and its revenue is deteriorating rather fast. It currently has a negative profit margin of nearly 78 percent and a t-12 EPS of $3.46.

FireEye stock currently prints a one year loss of 8.53%, and a year-to-date return of around 9%.

GoPro Inc (NASDAQ:GPRO) was one of today’s notable stocks in decline, down as much as 12 percent. The nosedive comes after company yesterday afternoon reported worse than expected revenues and issued disappointing guidance. The San Mateo, California-based action camera maker said it earned $0.29 per share, well above the $0.24 per share analysts were expecting. Revenue rose 23.8% year-over-year to $540.62 million, but came in below views for $576.06 million.

Looking ahead, the company guided 1Q17 revenues of $190 million to $210 million, as compared to analysts’ expectations of $271.40 million.

GoPro stock got at least two downgrades today ; to ‘Underperform’ from ‘Market Perform’ at Raymond James, and to ‘Underperform’ from ‘Neutral’ with a four point cut to $6 a share at R.W. Baird.

Shares in the $1.4 billion company fell 12.67 percent on Friday to close at $9.58.

GoPro stock currently prints a one year loss of about 2.04% and a year-to-date return of around 9.99%.

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About Ari Haruni 157 Articles
Ari Haruni is the Co-Founder & CEO of Wall Street Pit.

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