FireEye (FEYE) reported earnings Thur 4 Aug 2016 (a/h)

** charts before earnings **

 

** chart after earnings **

FireEye beats by $0.06, misses on revs; guides Q3 EPS in-line, revs below consensus; guides FY16 EPS in-line, revs below consensus; discloses restructuring plan  :

• Reports Q2 (Jun) loss of $0.33 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of ($0.39); revenues rose 18.9% year/year to $175 mln vs the $181.57 mln Capital IQ Consensus.
• Co issues guidance for Q3, sees EPS of ($0.32)-($0.30), excluding non-recurring items, vs. ($0.24) Capital IQ Consensus Estimate; sees Q3 revs of $180-186 mln vs. $208.09 mln Capital IQ Consensus Estimate.
  • Total Billings in the range of $200-215 mln.
  • Operating margin in the negative 25-27% range
• Co issues guidance for FY16, sees EPS of ($1.32)-($1.24), excluding non-recurring items, vs. ($1.24) Capital IQ Consensus Estimate; sees FY16 revs of $716-728 mln vs. $793.45 mln Capital IQ Consensus Estimate.
  • Non-GAAP Billings in the range of $835-855 mln (Prior $975-1055 mln)
  • Non-GAAP Operating Margin in the range of negative 26-28%
• On August 2, 2016, FireEye's Board of Directors approved a restructuring plan and reduction in workforce to reduce operating expenses and align the company's expense structure with current growth expectations to achieve non-GAAP profitability in the fourth quarter of 2017. FireEye expects the restructuring will reduce total non-GAAP costs by at least $20 million in the fourth quarter of 2016, and currently estimates that it will recognize pre-tax charges to its GAAP financial results of between $15 and $20 million, consisting of severance and other one-time termination benefits and other associated costs.