Cybersecurity Q1 Earnings: FEYE Bombs, CYBR Trounces

After the closing bell Thursday on an extraordinarily busy afternoon, among the onslaught of earnings reports being released are a couple from the cybersecurity segment of the technology industry: FireEye ( FEYE ) and CyberArk ( CYBR ). To say results were a mixed bag between these 2 firms is a huge understatement.

Moments after regular trading ended today, Silicon Valley-based FireEye posted a loss per share of -83 cents on quarterly sales of $168 million. The bottom line beat the Zacks consensus estimate of -89 cents per share, but below the $172 million in revenues we had been expecting. Also, the cyber-attack-preventer for enterprises and governments lowered Q2 guidance to a range of $178-185 million, beneath our consensus of $194 million prior to the report.

Shares plummeted 7.5 percent immediately following the Q1 earnings release, which further sinks the company's fortunes in a year that had already seen FEYE shares fall 23 percent year to date. FireEye carried a Zacks Rank #2 (Buy) into the earnings release, with a Growth Style Score of A and a Value Score of F (VGM: C ). We expect analysts to get busy ratcheting down estimates in the days to come, likely sending Zacks Rank and Style Scores down from here.

Meanwhile, Israel-based CyberArk had a tremendous Q1, reporting 15 cents per share (accounting for BNRI) on $47 million in revenues for the quarter, easily topping the 10 cents per share and $33 million in sales Zacks had been expecting. The enterprise-oriented IT security firm saw revenues grow 43 percent year over year, and Q2 revenue guidance is now $47.5 million - 48.5 million, higher than the prior Zacks consensus of $47 million.

CyberArk has beaten earnings estimates over the last 4 quarters by an average of 186.6 percent, and it looks as if the company is continuing to do what it needs to grow a successful cybersecurity business. Yet shares are trading 4 percent lower in the after-market, perhaps feeling the gravitational pull of the much-larger FireEye.

Look for our full earnings roundups on these and other companies first thing tomorrow morning.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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