Tag Archives: qlys

CyberArk Yanked On Imperva ‘Quota’ Blunder, Lagging FireEye Sales

Cybersecurity stocks toppled broadly Friday despite a CyberArk Software ( CYBR ) blowout Q1, losing ground on disappointing results from FireEye ( FEYE ) and Imperva ( IMPV ) that included, respectively, a sudden CEO shift and ousted EMEA management on lagging sales. IBD’s 26-company Computer Software-Security industry group, which already ranks a lowly No. 178 of 197 groups tracked, was down 5.5% in morning trading on the stock market today , touching a more than two-month low. Imperva and FireEye stocks led the deluge, down a respective 26% and 18%, near 33.50 and 13. CyberArk stock was down 2%, near 39.50. In fact, the only stocks on the rise in the sector were tiny Mimecast ( MIME ) and Qualys ( QLYS ), which was up just a fraction. Viewfinity ‘Meaningfully’ Helps CyberArk Late Thursday, CyberArk reported 43% year-over-year sales growth to $46.9 million and 23 cents earnings per share, up 44% vs. the year-earlier quarter. Both metrics topped the consensus of 17 analysts polled by Thomson Reuters for $43.4 million and 16 cents. Current-quarter guidance for $47.5 million to $48.5 million in sales and 18-20 cents EPS ex items beat Wall Street’s forecast for $47.5 million and 18 cents at the midpoints. On a year-over-year basis, sales would be up 32%, and EPS minus items would be flat. License sales drove CyberArk’s Q1, up 38% to $27.5 million (59% of total revenue), leading 41% growth in the maintenance and professional services segment. Q1 marked acquisition Viewfinity’s first “meaningful contribution,” Piper Jaffray analyst Andrew Nowinski wrote in a research report. Nowinski reiterated an overweight rating and 55 price target on CyberArk stock, noting “broad adoption” across all segments. “They are seeing increased activity with midsize organizations, including universities, credit unions and law firms, which supports the belief that firms of all sizes need this layer of security,” he wrote. Government growth included six-figure deals in all three regions. FireEye Sees ‘Inflection Point’ Dougherty analyst Catharine Trebnick called FireEye’s Q1 an “inflection point” that saw subscriptions replace products as FireEye’s leading segment — up 71% vs. down 16% on a year-over-year basis. The unexpected transition caused FireEye’s Q1 sales to miss but billings to fly. And CEO David DeWalt stepped down to executive board chairman, succeeded by Kevin Mandia, Mandiant founder. FireEye acquired Mandiant in 2014, and Mandia has held several positions at FireEye since. Late Thursday, FireEye reported $168 million in sales and $186 million in billings minus items, up a respective 34% and 23%. A 47-cent loss per-share ex items shrunk by a penny vs. last year’s loss. Billings topped FireEye’s $163 million-$183 million model, and losses beat the consensus of 35 analysts polled by Thomson Reuters for 50 cents. But sales missed the projection for $171.8 million, and on Friday, at least four analysts cut their price targets on FireEye stock. Of the 28 deals worth more than $1 million, 80% included multiple products/subscriptions, and 50% had three or more, Trebnick wrote in a report. More than half of the seven-figure deals included FireEye-as-a-Service — or cloud — products. Trebnick is neutral on FireEye stock. For the current quarter, FireEye guided to $178 million to $185 million in sales, up 23% at the midpoint, and a 38-cent to 40-cent per-share loss minus items, missing the consensus for $192.8 million and a 36-cent loss. Billings views for $200 million to $215 million would be up 16%. Imperva’s ‘Doubly Whammy’ Hits Q1 Imperva, on the other hand, experienced a “double whammy” during Q1 as Web-application firewall and Europe/Middle East/Asia sales stalled, prompting the firm to shift channel priorities and remove its EMEA head of sales. Summit Research analyst Srini Nandury reiterated a buy rating but trimmed his price target on Imperva stock to 50 from 70. Imperva trimmed Q2 guidance but inched 2016 views up — the latter of which Nandury sees as an impossibility. “We worry that the year will be back-end-loaded with no margin of error,” he wrote in a report. For Q1, Imperva reported $59.8 million in sales, up 34%, and a 25-cent per-share loss minus items vs. a 26-cent loss in the year-earlier quarter. Sales met Wall Street expectations, while losses were better by 3 cents. Imperva’s Q2 view for $65.5 million to $66.5 million in sales would be up 23%, but it missed the consensus of 22 analysts polled by Thomson Reuters for $70.2 million. The company’s outlook for a 2-cent to 4-cent loss per share ex items edged views for a 4-cent loss. “Guidance was lowered mainly due to sales execution challenges in EMEA and U.S.,” Nandury wrote in a report. “Some sales force reps were only selling Database Security product so that they can close out their quota for the quarter, while ignoring lower-priced WAF products.” But Nandury sees the issues as fixable. Gartner, IDC and Forrester industry trackers rate Imperva’s products highly, he wrote. Amazon.com ‘s ( AMZN ) Amazon Web Services cloud business can’t touch Imperva’s Database Security, he said. “We do not see evidence that enterprises are going to rely on cloud providers such as AWS to provide security to their data,” he wrote.

Qualys ‘Health’ Questioned After Q1 Billings, Deferred Revenue Miss

Qualys ( QLYS ) stock tumbled Tuesday on jitters that missed estimates for Q1 billings and deferred revenue could indicate slowing vulnerability-management sales, a Summit Research analyst suggested. In morning trading on the stock market today , Qualys stock was down 3.5% to near 25, piercing its 50-day line. Late Monday, the cybersecurity firm reported Q1 sales and earnings that topped Wall Street expectations, but offered soft current-quarter views. Qualys reported 21 cents earnings per share minus items on $46.2 million in sales, up 40% and 23%, respectively, vs. the year-earlier quarter. Analysts had modeled 15 cents and $45.1 million. Current-quarter sales guidance for $47.6 million to $48.3 million met the consensus of 16 analysts polled by Thomson Reuters at the midpoint, but the EPS outlook for 15-17 cents entirely missed analysts’ 18 cents. Robert W. Baird analyst Steven Ashley downgraded Qualys stock to neutral from outperform, but Credit Suisse analyst Sitikantha Panigrahi kept his outperform rating and 35 price target on the shares. Q1 billings of $48.3 million decelerated to 9% year-over-year growth and missed the consensus for $51.6 million, Panigrahi noted in a research report. On the company’s earnings conference call with analysts, CEO Philippe Courtot blamed the billings weakness on an altered contract with an unidentified managed security service provider (MSSP) and said some Q1 deals had slipped into Q2. MSSP deals are lengthening, which changes the way Qualys looks at deferred revenue, Courtot said. Deferred revenue came in at $101.6 million, up 15.5% year over year. Billings and deferred revenue are important “health” indicators for software-as-a-service (SaaS) providers like Qualys, Summit Research analyst Srini Nandury wrote in a report. Nandury reiterated his buy rating and 35 price target on Qualys stock. Yet he wrote that “we are a bit concerned the slowing could indicate the core business is slowing, or the upsell/cross sell could not be working as well as it should.” Courtot, however, said he expects Qualys to outgrow the vulnerability-management market on share gains and upsell opportunities. IDC forecasts 10% year-over-year growth in that market, which is Qualys’ bread and butter.

After Hours: Sturm Ruger, Texas Roadhouse, Apple Supplier IDT

Earnings reports from Sturm Ruger ( RGR ), Apple ( AAPL ) supplier Integrated Device Tech ( IDTI ), Monolithic Power Systems ( MPWR ), Texas Roadhouse ( TXRH ) and Qualys ( QLYS ) headline Monday’s after-hours session. Sturm Ruger Sturm Ruger reported $1.21 in diluted Q1 per-share earnings, a 49% spike, on a 26% revenue increase to $173.1 million, far above consensus views for 96 cents EPS on $147.7 million in sales. The gunmaker also declared a 48-cent per-share dividend, up from 35 cents in the prior quarter and 25 cents in the quarter before that. Sturm Ruger stock rose more than 4% in late trading to above 70 after closing up 5.5% in regular trade on the stock market today . That would put Ruger’s shares above their 50-day moving average for the first time since Ruger and rival Smith & Wesson ( SWHC ) crashed April 4 on fears of slowing gun sales. Smith & Wesson also rallied late after closing up 4.6%. IBD’s Take: How does Sturm Ruger stock stack up vs. objective targets and key rivals? Find out at IBD Stock Checkup Integrated Device Tech The Apple Watch supplier’s Q4 non-GAAP EPS popped 24% to 36 cents, surpassing analyst expectations for 33 cents but growth slowed for a fourth straight quarter. Revenue climbed 20% to $189.4 million, topping views for $187 million. Sales growth snapped a three-quarter string of deceleration. Integrated Device Tech shares rose 2% late after closing the regular session up 2.1%. Meanwhile, Apple shares closed down 0.1%, its eighth straight loss . Monolithic Power Systems Chip designer Monolithic Power said Q1 non-GAAP EPS jumped 22% to 45 cents, beating projections for 44 cents. Revenue grew 15% to $84.5 million vs. estimates for $83 million. For Q2, the Sony ( SNE ) PlayStation 4 chipmaker sees revenue in the range of $91 million-$95 million, with the $93 million midpoint ahead of views for $91.5 million. Monolithic Power shares were little changed in late trade after rising 1.8% in the regular session. Texas Roadhouse Texas Roadhouse reported Q1 EPS of 50 cents a share, including a 5-cent pre-tax charge. Wall Street had estimated 54 cents. Revenue increased 12% to $515.6 million, slightly below views for $515.9 million. Comparable sales grew 4.6% at company restaurants and 3.1% at franchise locations. Shares closed the regular session up 3.3% and jumped more than 4% late. IBD’s Take: How appetizing is Texas Roadhouse’s stock and how does it compare to rivals? Find out at IBD Stock Checkup Qualys Cloud-based security and compliance solutions provider Qualys ( QLYS ) notched a 40% per-share profit gain in Q1, with 21 cents a share on 23% revenue growth to $46.2 million. That topped estimates for 15 cents EPS and $45.1 million in revenue. For Q2, Qualys expects EPS of 15-17 cents, below views for 18 cents a share. The midpoint of revenue outlook of $47.6 million-$48.3 million — $47.95 million — is a hair above analyst forecasts for $47.91 million. For 2016, Qualys said it continues to see $195.6 million-$198.6 million in sales and 74-79 cents EPS, vs. views for $197 million in revenue and 77 cents EPS. The company also announced the appointment of Zynga ( ZNGA ) alum Melissa Fisher as its new CFO. Shares fell 4% late after rising 5.5% during the regular session. Anadarko Petroleum Anadarko Petroleum ( APC ) reported an adjusted Q1 loss of $1.12 a share vs. estimates for a loss of $1.16 a share. Revenue fell to $1.675 billion vs. views for $1.81 billion. Shares fell nearly 2% late after closing down 1.5%.