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CyberArk Software ‘s ( CYBR ) first-quarter improvement on health care and higher education sales wasn’t reflected at FireEye ( FEYE ), where product sales “remain suppressed” amid the transition to subscription offerings, an analyst said Thursday. Both are set to report first-quarter earnings late Thursday. Mid-morning on the stock market today , FireEye and CyberArk stocks were each down a fraction, and Dougherty analyst Catharine Trebnick expects solid and in-line reports, respectively, from the duo. Analysts polled by Thomson Reuters project CyberArk to report $43.4 million in sales and 16 cents a share in adjusted earnings, up 32% and flat, respectively, vs. the year-earlier quarter. Demand for CyberArk’s bread and butter, its privileged account management, remains robust, Trebnick wrote in a research report. Trebnick rates CyberArk stock a buy and has a 50 price target on the shares. Several health care bake-offs put CyberArk at the top of vendors’ lists. In one deployment alone, CyberArk’s enterprise vault solutions are being used in 20,000 servers. Higher education, too, is paying dividends, Trebnick wrote. “A number of chief information security officers in this area have selected CyberArk’s solutions, as high turnover in their IT departments (due to staff members often being graduating seniors) drives the need for credential management,” she wrote. For FireEye, however, the first quarter represents another stalled period, as the company transitions to subscriptions — FireEye-as-a-Service and Mandiant incident response — from product sales. FireEye’s network and endpoint product sales have’t improved, Trebnick wrote. “With the HX (endpoint), we did not pick up significant traction, despite recent changes to include exploit detection,” she wrote. “According to one source, the installed base looks to be slow (in) adopting the next generation of code, and many are still running old versions.” But FireEye’s channel is driving increased combination sales, pairing FaaS and Mandiant. The consensus of 35 analysts models $171.8 million in sales, up 37% year over year, and a 50-cent per-share loss minus items widening from a 48-cent loss in the year-earlier quarter. FireEye previously guided to $163 million-$183 million in Q1 billings, which would be up 14% at the midpoint of guidance. Trebnick has a neutral rating on FireEye stock. Scalper1 News
Scalper1 News