FireEye beats 3Q earnings expectations, misses revenue forecasts

MILPITAS, Calif. – Shares of FireEye slid 20 percent in extended trading Tuesday after the computer security software developer booked weak revenue in the third quarter and issued tepid guidance.

The Milpitas, California-based company said it had a third-quarter loss of $120 million, or 83 cents per share. Losses, adjusted for one-time gains and costs, came to 51 cents per share.

The results exceeded Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for a loss of 56 cents per share.

The computer security software company posted revenue of $114.2 million in the period, which fell short of Street forecasts. Analysts expected $116.3 million, according to Zacks.

For the current quarter ending in December, FireEye said it expects revenue in the range of $135 million to $147 million. Analysts expect $143.8 million, according to FactSet.

The company expects a full-year loss of $2.15 to $2.05 per share, with revenue ranging from $418 million to $430 million. Analysts forecast an annual loss of $2.13 per share on revenue of $428.3 million, a survey by FactSet reports.

FireEye Inc. shares changed hands at $27.25 in the after-hours market, down $7 from the regular close. The stock has dropped 21 percent since the beginning of the year, as of Tuesday's close.

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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. FEYE stock research report from Zacks.

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Keywords:FireEye,Earnings Report