Just few months ago, Wall Street was kicking FireEye Inc (NASDAQ:FEYE) to the curb. It was a tech has-been. Washed up. Finished.
Well, of course, FEYE stock has proven to be quite durable. Since mid-March, the shares have gained an impressive 50%. Yes, in the tech world, things can move fast.
So what now? Is FEYE stock still a good value?
Reasons to Feel Good about FEYE Stock
Well, as for the core fundamentals, it’s understandable why investors have quickly turned bullish. Just look at the earnings report for Q1. Revenues came in at $173.7 million and the net loss was 9 cents on FEYE stock. The Street, on the other hand, was looking for the top-line to hit only $163.7 million, with a loss of 26 cents a share.
The guidance was also encouraging. For the current quarter, FEYE expects revenues of $176 million and a loss of 12 cents a share. This compares to the consensus estimate of a 14 cent loss and revenues of $173 million.
All this is a testament to the company’s standout CEO, Kevin Mandia. Since coming on board a year ago, he has wasted little time in taking swift action — such as by making judicious cost cuts as well as pulling off a transition to the cloud.
Note that the company has recently launched the Helix platform, which is a full-on suite of services that span from firewalls to event management. According to Mandia, during the latest earnings call:
“It is still very early in the Helix lifecycle, but we are already seeing positive signs. Even though we released Helix on the last day of the quarter, we closed Helix deals on that day in four different vertical markets, including an energy company and a leading apparel company. Two of these customers are brand-new logos to FireEye. The Helix deals drove incremental product sales as well, in both new and existing customers, including NX sales, HX sales and cloud e-mail. These incremental product purchases represent a substantial increase in our transaction sizes for those deals. We’re also seeing early validation that Helix plus FireEye as a Service, is a compelling combination.”