FEYE - Why Shares of FireEye Were Down 16% Today
Shares of FireEye (NASDAQ: FEYE) were down 16.2% Friday as of 12:40 p.m. EDT following the company's second-quarter 2021 earnings report. Results weren't all bad for the cybersecurity company , but the steep drop in stock price is due to uncertainty on its path forward following the sale of its products segment to private equity firm Symphony Technology Group for $1.2 billion.
FireEye's revenue from continuing operations (the company's subscription software service Mandiant Solutions that remains after the sale of its network, email, endpoint, and cloud security products) was $114 million in Q2, up 17% year over year. Adjusted operating margin was negative 26%, though, significantly higher than expected from restructuring costs and other expenses related to the divestiture.
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Why Shares of FireEye Were Down 16% Today