After-Hours Alert: Why Fortinet Shares Are Falling

Fortinet Inc FTNT shares are trading lower in Wednesday's after-hours session after the company reported financial results.

Fortinet said second-quarter revenue increased 29% year-over-year to $1.03 billion, which was in line with estimates, according to data from Benzinga Pro. The cybersecurity firm reported quarterly earnings of 24 cents per share, which beat the estimate of 22 cents per share.

Product revenue was up 34% year-over-year. Bookings totaled $1.38 billion in the quarter, up 42% year-over-year. Billings hit $1.3 billion in the second quarter, up 36% year-over-year.

"We delivered strong revenue and billings growth in the second quarter driven by an over 50% year-over-year increase in the number of transactions larger than one million dollars," said Ken Xie, founder, chairman and CEO of Fortinet.

Fortinet expects third-quarter revenue to be between $1.105 billion and $1.135 billion versus the estimate of $1.12 billion. The company expects third-quarter adjusted earnings to be between 26 cents and 28 cents per share versus the estimate of 27 cents per share. 

Full-year revenue is expected to be in the range of $4.35 billion to $4.4 billion versus the estimate of $4.38 billion. Full-year adjusted earnings are expected to be between $1.01 and $1.06 per share.

See Also: Qorvo Beats On Q1 EPS, Expects Strong Free Cash Flow Outlook for FY23

FTNT Price Action: Fortinet has traded between $362.12 and $55.19 over a 52-week period.

The stock was down 10.6% in after-hours at $56.21 at press time, according to Benzinga Pro.

Photo: jaydeep_ from Pixabay.