- Fortinet beats earnings and revenue estimates and raises its full-year billings guidance midpoint by $100 million.
- Fortinet posts 15% billings growth and reports a 33% non-GAAP operating margin.
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Fortinet, Inc. FTNT shares are trading lower Thursday after the company reported second quarter financial results on Wednesday after the market closed.
What To Know: The company reported adjusted earnings per share of 64 cents, beating the consensus estimate of 59 cents. In addition, Fortinet reported sales of $1.63 billion, beating the consensus estimate of $1.62 billion.
Billings grew 15% year-over-year to $1.78 billion. Fortinet also reported a non-GAAP operating margin of 33% and highlighted strong growth in its Security Operations and Unified SASE segments, up 35% and 22% year-over-year, respectively.
Q3 Outlook: Fortinet sees adjusted earnings per share from between 62 cents to $64 cents, versus the consensus estimate of 61 cents. Furthermore, it sees sales from $1.67 billion to $1.73 billion, versus the consensus estimate of $1.71 billion.
FY25 Outlook: The company raised its adjusted earnings per share guidance from between $2.43 to $2.49 to between $2.47 to $2.53, versus the consensus estimate of $2.48. It also narrowed its sales guidance from between $6.65 billion to $6.85 billion to between $6.67 billion to $6.82 billion, versus the consensus estimate of $6.75 billion.
Also, the company raised its full-year billings guidance midpoint by $100 million
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Truist Securities analyst Joel Fishbein maintained a Buy rating on Fortinet and lowered the price target from $125 to $95.
- Barclays analyst Saket Kalia maintained an Equal-Weight rating on Fortinet and lowered the price target from $110 to $90.
- Mizuho analyst Gregg Moskowitz maintained an Underperform rating on Fortinet and lowered the price target from $87 to $75.
- Wedbush analyst Daniel Ives maintained an Outperform rating on Fortinet and lowered the price target from $120 to $100.
- BMO Capital analyst Keith Bachman maintained a Market Perform rating on Fortinet and lowered the price target from $110 to $90.
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FTNT Price Action: At the time of writing, Fortinet shares are trading 25.3% lower at $72.13, according to data from Benzinga Pro.
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