Why FireEye's Upbeat Earnings Didn't Get Me Excited
FireEye (NASDAQ: FEYE) posted better-than-expected fiscal 2021 first-quarter earnings this week. Given the strong performance of its cloud and consultancy businesses, management raised its full-year outlook. Yet investors shouldn't get too excited.
The cybersecurity specialist still needs to deal with two significant challenges -- legacy hardware and high operating costs -- that will drag on its results over the next several years. Let's take a closer look at what was reported and why there are still issues for this tech company.
During the first quarter, FireEye's revenue grew 10% year over year to $246 million, well above the anticipated revenue range of $236 million to $239 million. More importantly, the company's cloud and consultancy businesses drove that growth, which shows that the transition away from legacy hardware-based revenue is materializing.
Source Fool.com
