Summit Reviews FireEye's Q3 Earnings, Shares Plummet

Shares of FireEye Inc (NASDAQ: FEYE) dropped a dismal 14 percent at Wednesday's opening bell following a top-line miss on its third quarter earnings report.

Following the report, Summit analyst Richard Williams released a note providing some insight into the company's performance.

Williams said the big drop in share price is likely due to concern that the top-line miss implies a deteriorating revenue mix. However, he disagrees. He said the company's billings more than offsets the miss.

Williams commented, "We would take advantage of the weakness to add to positions. We can see nothing in the quarter that isn't performing robustly and up to expectations. Once we factor higher deferreds versus topline into the equation, FireEye would have easily beaten consensus on virtually every metric."

Looking forward, FireEye has guided fourth quarter revenue to $141 million with an EPS of -$0.48 and full-year revenue to $424 million with and EPS of -$2.10.

Summit currently rates FireEye a Buy with a $45 price target.

Shares recently traded at $29.54, down 13.7 percent.