by Christopher Freeburn | May 7, 2014 10:20 am
Shares of FireEye (FEYE) plunged more than 25% in Wednesday morning trading after the online security firm said it expects to post a bigger annual loss.
FEYE had previously forecast an adjusted loss for this year of between $2 and $2.20 per share. The company has raised that estimate to between $2.10 and $2.30 per FEYE share. Wall Street was expecting a loss of $2.04 per share, Reuters notes.
FireEye attributed the bigger anticipated loss to increasing research and development costs. FEYE develops cloud-based solutions to defend against cyber-attacks and computer viruses. The firm plans to unveil four new products over the coming three months.
In addition to increasing its expected adjusted annual loss, FEYE also boosted its revenue forecast for the year from earlier estimates of between $400 million and $410 million, to a new range of $405 million to $415 million. Analysts had predicted annual revenue of $406.9 million.
During the first quarter, FEYE posted a loss of $101.2 million. Adjusted EPS showed a loss of 53 cents, in line with Wall Street forecasts. Quarterly revenue of $73.9 million topped analysts estimates of $71.6 million.
FEYE also announced that it will pay $70 million to acquire nPulse Technologies.
On Tuesday, FEYE stock closed at $37.13 per share.
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