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Cybersecurity Q1 Earnings: FEYE Bombs, CYBR Trounces

After the closing bell Thursday on an extraordinarily busy afternoon, among the onslaught of earnings reports being released are a couple from the cybersecurity segment of the technology industry: FireEye (FEYE) and CyberArk (CYBR). To say results were a mixed bag between these 2 firms is a huge understatement.

Moments after regular trading ended today, Silicon Valley-based FireEye posted a loss per share of -83 cents on quarterly sales of $168 million. The bottom line beat the Zacks consensus estimate of -89 cents per share, but below the $172 million in revenues we had been expecting. Also, the cyber-attack-preventer for enterprises and governments lowered Q2 guidance to a range of $178-185 million, beneath our consensus of $194 million prior to the report.

Shares plummeted 7.5 percent immediately following the Q1 earnings release, which further sinks the company's fortunes in a year that had already seen FEYE shares fall 23 percent year to date. FireEye carried a Zacks Rank #2 (Buy) into the earnings release, with a Growth Style Score of A and a Value Score of F (VGM:C). We expect analysts to get busy ratcheting down estimates in the days to come, likely sending Zacks Rank and Style Scores down from here.

Meanwhile, Israel-based CyberArk had a tremendous Q1, reporting 15 cents per share (accounting for BNRI) on $47 million in revenues for the quarter, easily topping the 10 cents per share and $33 million in sales Zacks had been expecting. The enterprise-oriented IT security firm saw revenues grow 43 percent year over year, and Q2 revenue guidance is now $47.5 million - 48.5 million, higher than the prior Zacks consensus of $47 million.

CyberArk has beaten earnings estimates over the last 4 quarters by an average of 186.6 percent, and it looks as if the company is continuing to do what it needs to grow a successful cybersecurity business. Yet shares are trading 4 percent lower in the after-market, perhaps feeling the gravitational pull of the much-larger FireEye.

Look for our full earnings roundups on these and other companies first thing tomorrow morning.
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