Earnings Preview: Fortinet

Fortinet FTNT is set to give its latest quarterly earnings report on Thursday, 2024-11-07. Here's what investors need to know before the announcement.

Analysts estimate that Fortinet will report an earnings per share (EPS) of $0.52.

Fortinet bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.16, leading to a 25.3% increase in the share price the following trading session.

Here's a look at Fortinet's past performance and the resulting price change:

Tracking Fortinet's Stock Performance

Shares of Fortinet were trading at $77.92 as of November 05. Over the last 52-week period, shares are up 61.53%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Opinions on Fortinet

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Fortinet.

Analysts have given Fortinet a total of 8 ratings, with the consensus rating being Neutral. The average one-year price target is $80.88, indicating a potential 2.59% upside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of CrowdStrike Holdings, Zscaler and Gen Digital, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for CrowdStrike Holdings, with an average 1-year price target of $324.11, suggesting a potential 311.1% upside.
• Zscaler is maintaining an Outperform status according to analysts, with an average 1-year price target of $213.35, indicating a potential 170.61% upside.
• Gen Digital is maintaining an Neutral status according to analysts, with an average 1-year price target of $32.5, indicating a potential 58.78% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for CrowdStrike Holdings, Zscaler and Gen Digital, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Fortinet ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

All You Need to Know About Fortinet

Fortinet is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, zero-trust access, and security operations. The firm derives a majority of its revenue through sales of its subscriptions and support-based business. The California-based firm has more than 700,000 customers across the world.

A Deep Dive into Fortinet's Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Fortinet showcased positive performance, achieving a revenue growth rate of 10.95% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Fortinet's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 26.48% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Fortinet's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 504.05% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Fortinet's ROA stands out, surpassing industry averages. With an impressive ROA of 4.83%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Fortinet's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.45, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Fortinet visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.