Fortinet (NASDAQ:FTNT) Inc., the cybersecurity company, is still grappling with the aftermath of a 17% share drop after its Q3 results and Q4 forecasts fell short of expectations. This follows the firm's worst single-day percentage drop on record in Q2.
The company projected its Q4 revenue to be between $1.38 billion and $1.44 billion, and billings to be from $1.56 billion to $1.70 billion, which missed analyst expectations. The forecasted adjusted EPS of 42 to 44 cents also fell short of the FactSet consensus of 42 cents.
Despite these setbacks, Fortinet's shares have risen by 18% this year, indicating some resilience in the face of these challenges.
In Q3, the company reported a revenue of $1.34 billion, up from $1.15 billion a year before, billings of $1.49 billion, and net income per share of 41 cents (totaling $322.9 million), compared with $231.6 million, or 29 cents a share, a year before. These figures surpassed the FactSet consensus of 36 cents for Q3 EPS.
The disappointing report from Fortinet has also had a ripple effect on other cybersecurity firms' shares, although the specifics were not detailed.
InvestingPro Insights
Fortinet Inc. (FTNT) has displayed some impressive financial metrics despite the recent challenges. According to InvestingPro data, the company has a sizeable market cap of $45.23 billion and has shown a strong gross profit margin of 76.26% in the last twelve months as of Q2 2023. Moreover, its revenue has grown by 30.71% in the same period, indicating a sustained growth trajectory.
InvestingPro Tips reveal that FTNT holds more cash than debt on its balance sheet and has been consistently increasing its earnings per share. Furthermore, the company's stock generally trades with low price volatility, which could be a positive sign for risk-averse investors.
It's worth noting that there are many more insights available on InvestingPro, with a total of 20 tips listed for FTNT. These tips could provide valuable guidance for potential investors and those interested in the cybersecurity sector.
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