Analyst Estimates: Here's What Brokers Think Of FireEye, Inc. (NASDAQ:FEYE) After Its Third-Quarter Report
FireEye, Inc. (NASDAQ:FEYE) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results were mixed overall, with revenues slightly ahead of analyst estimates at US$238m. Statutory losses by contrast were 6.8% larger than predictions at US$0.17 per share. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for FireEye
Following the latest results, FireEye’s 17 analysts are now forecasting revenues of US$978.6m in 2021. This would be a credible 5.4% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 44% to US$0.55. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$971.4m and losses of US$0.60 per share in 2021. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.
The average price target held steady at US$16.97, seeming to indicate that business is performing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on FireEye, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$14.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await FireEye shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that FireEye’s revenue growth is expected to slow, with forecast 5.4% increase next year well below the historical 7.9%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than FireEye.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations – although our data does suggest that FireEye’s revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$16.97, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for FireEye going out to 2022, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for FireEye that we have uncovered.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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