Out Fox The $treet

After the close,  FireEye (FEYE)  released preliminary FQ3 revenues above the previous guidance while bookings were inline with guidance. The numbers aren't that impressive considering the company originally guided revenues below a consensus for the quarter of $229 million.  -The company posted early estimates for Q3 revenue "at or above the high end" of previous guidance for $217M-$221M, and billings to be within the range of $245M-$255M. -The consensus expectations for Q3 revenues of $219.5M.  The stock is worth about $3 billion with slow growth and prospects of generating only $50 million in free cash flow this year. The cybersecurity company continues to go nowhere fast. FireEye likely rallies to $16-17, but the stock isn't going to $22 anytime soon as UBS recently speculated. Investors should look to unload on any pop on these numbers.   More research: FireEye: Struggler More commentary - WhoTrades Disclosure: No position....

FireEye generated impressive Q3 results with impressive cash flow improvements. The cybersecurity company is in the midst of a shift towards Security as a Service. The weak Q4 guidance placed the stock right back in the penalty box when trading at multi-year highs near $20. My   investment thesis   has long held with most stocks that unless the stock throws off cash every day the company opens for business, the stock just isn't appealing.   FireEye   ( FEYE ) has long fell into that category due to the lack of growth to vastly change the cash flow picture, but the recent   Q3 results change the equation ever so slightly. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details.   

FireEye has vastly improved financial results in the last couple of years. The cybersecurity company still isn't predicting generating large cash flows and profits. The stock won't rally much farther until FireEye shows that the business isn't structurally low margin. Last year,  FireEye  ( FEYE ) became a compelling  turnaround story  as business under the surface improved from a shift to subscription services while the cost structure was finally aligned with the revenue stream. Unfortunately, the company is still running into some of the legacy cost issues that will hold the cybersecurity specialist's stock back. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

FireEye announced a new CFO who is expected to join the company on September 21. The stock has failed to keep up with industry peers in a large part due to a lack of financial discipline. Investors should keep an eye on the company with an opportunity to scoop up cheap shares if the new CFO can keep growth and instill discipline. The hiring of a new CFO is a big step forward for FireEye (NASDAQ: FEYE ). Normally, the abrupt exit of a CFO is a major red flag, but the hiring of a replacement doesn't garner much interest. Due to the unique situation of the cybersecurity stock and frustrations over financial discipline, this hiring has more than the normal relevance. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details.