Fortinet's Mixed Q3 Results Sends Stock Falling After-Hours - Here's Why

Fortinet, Inc. FTNT shares are trading lower in Thursday's after-hours session following the company's third-quarter financial results. Here are the details.

What To Know: Fortinet reported quarterly earnings of 41 cents per share which beat the analyst consensus estimate of 36 cents, a 24.24% increase over earnings of 33 cents per share from the same period last year.

The company reported quarterly sales of $1.33 billion, which missed the analyst consensus estimate of $1.35 billion, a 16.05% increase over sales of $1.15 billion in the same period last year.

In addition, total billings were $1.49 billion, an increase of 5.7% compared to $1.41 billion from the same period last year.

Fortinet issued fourth-quarter guidance, with earnings per share anticipated to be between 42 cents and 44 cents, versus the estimate of 42 cents, and revenue estimated to be between $1.38 billion and $1.44 billion, versus the estimate of $1.5 billion.

Full-year 2023 earnings per share are expected to be between $1.54 and $1.56, versus the $1.51 estimate, while revenue is estimated to be between $5.27 billion and $5.33 billion, versus the $5.4 billion estimate.

"While the Secure Networking market is experiencing slower growth as product demand returns to normal levels following two years of elevated growth, we are leveraging our scale, go-to-market capabilities and engineering expertise to focus our attention on the faster growing SASE and Security Operations markets, in addition to continuing our focus on Secure Networking," said Ken Xie, Founder, Chairman and CEO of Fortinet.

"We are well-positioned to capitalize on these emerging growth opportunities by leveraging our integrated FortiOS operating system, industry leadership in firewall and SD-WAN, and exceptional solutions in each of the SASE and Security Operations markets."

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FTNT Price Action: Shares of FTNT were down 15.60% at $48.63 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Pete Linforth from Pixabay