Fortinet Earnings Top Estimates, Shares Jump On Strong Guidance

Fortinet (FTNT) on Tuesday reported December-quarter earnings that topped analyst estimates. The cybersecurity firm’s 2023 revenue and billings guidance for FTNT stock also beat expectations. Shares surged on the news.

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For the fourth quarter, Fortinet earnings on an adjusted basis came in at 44 cents, up 76% from a year earlier. Also, revenue climbed 33% to $1.28 billion, just below estimates.

However, analysts expected Fortinet earnings of 39 cents a share on sales of $1.295 billion for the period ended Dec. 31.

Additionally, the Sunnyvale, Calif.-based firm said billings, a sales growth metric, rose 32% to $1.72 billion compared with analyst estimates of $1.69 billion.

Fortinet Stock: Guidance Tops Views

For full-year 2023, Fortinet said it expects per-share earnings of $1.40 at the midpoint of its outlook. The cybersecurity firm forecast revenue in a range of $5.37 billion to $5.43 billion.

Analysts had projected earnings of $1.40 per share on revenue of $5.34 billion.

Also, Fortinet said it expects 2023 billings in a range of $6.71 billion to $6.79 billion. Analysts had predicted $6.685 billion.

“Our market share gains are being driven by Fortinet’s integrated and single platform approach to cybersecurity combined with FortiASIC (semiconductor) technology, which lowers the management costs and the total cost of ownership for organizations,” said Chief Executive Ken Xie, in the earnings release.

Fortinet stock jumped 17.4% to near 63.15 in extended trading on the stock market today.

Shares Up 10% This Year

Heading into the Fortinet earnings report, the cybersecurity stock was up 10% in 2023.

The company competes in the firewall network security market versus Palo Alto Networks (PANW), Check Point Software Technologies (CHKP) and others. Firewalls block online intrusions and monitor web-based apps.

FTNT stock holds a Relative Strength Rating of 50 out of a best-possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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