We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fortinet (FTNT) to Report Q1 Earnings: What's in the Offing?
Read MoreHide Full Article
Fortinet Inc. (FTNT - Free Report) is slated to release first-quarter 2019 results on May 2.
It boasts a stellar record of positive surprises. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 18.77%.
In the last reported quarter, Fortinet's non-GAAP earnings per share of 59 cents exceeded the Zacks Consensus Estimate of 51 cents. Also, the bottom line improved significantly from the year-ago quarter figure of 32 cents.
Revenues of $507 million surpassed the Zacks Consensus Estimate of $496 million, and also increased 22%.
Strong global demand for the company’s Security Fabric offerings due to digital transformation and security refresh cycle across most industries was a driving force behind the previous quarter’s results.
Projections for Q1
For the first quarter, the company expects revenues of $465-$475 million. The Zacks Consensus Estimate is pegged at $471.8 million, indicating an 18.3% rise from the year-ago reported figure.
The company anticipates non-GAAP earnings per share to be in the band of 37-39 cents. The Zacks Consensus Estimate for earnings stands at 38 cents per share, implying a surge of 15.2%.
Non-GAAP gross margin is expected in the range of 75.5% to 76.5%, whereas non-GAAP operating margin is anticipated between 18% and 18.5%.
So, let’s see how things are shaping up prior to this announcement.
Fortinet’s experience in the security space and mission-critical solutions is helping it maintain and grow its market share in the booming cyber security space. Multiple deal wins and customer additions are likely to aid top-line growth for the first quarter.
Security Fabric architecture contributed to market share gain throughout 2018, along with improved sales and marketing. The trend is expected to have continued in the first quarter.
Strong demand for its portfolio of integrated secured SD-WAN and 5G products is likely to aid the upcoming quarterly results.
Moreover, its security processor unit, SPU, ASIC technology and a new high performance E-series product announced in the last reported quarter, are likely to act as tailwinds.
The Zacks Consensus Estimate for Product revenues is currently pegged at $161 million, indicating a 12.6% increase from the figure reported a year ago. The company’s high-end E-Series appliances are likely to aid its Product growth.
However, stiff competition from key network security players such as Cisco Systems (CSCO - Free Report) , Check Point (CHKP - Free Report) , Juniper Networks and Palo Alto Networks (PANW - Free Report) remains a headwind.
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Fortinet (FTNT) to Report Q1 Earnings: What's in the Offing?
Fortinet Inc. (FTNT - Free Report) is slated to release first-quarter 2019 results on May 2.
It boasts a stellar record of positive surprises. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 18.77%.
In the last reported quarter, Fortinet's non-GAAP earnings per share of 59 cents exceeded the Zacks Consensus Estimate of 51 cents. Also, the bottom line improved significantly from the year-ago quarter figure of 32 cents.
Revenues of $507 million surpassed the Zacks Consensus Estimate of $496 million, and also increased 22%.
Strong global demand for the company’s Security Fabric offerings due to digital transformation and security refresh cycle across most industries was a driving force behind the previous quarter’s results.
Projections for Q1
For the first quarter, the company expects revenues of $465-$475 million. The Zacks Consensus Estimate is pegged at $471.8 million, indicating an 18.3% rise from the year-ago reported figure.
The company anticipates non-GAAP earnings per share to be in the band of 37-39 cents. The Zacks Consensus Estimate for earnings stands at 38 cents per share, implying a surge of 15.2%.
Non-GAAP gross margin is expected in the range of 75.5% to 76.5%, whereas non-GAAP operating margin is anticipated between 18% and 18.5%.
So, let’s see how things are shaping up prior to this announcement.
Fortinet, Inc. Price and EPS Surprise
Fortinet, Inc. Price and EPS Surprise | Fortinet, Inc. Quote
Factors at Play
Fortinet’s experience in the security space and mission-critical solutions is helping it maintain and grow its market share in the booming cyber security space. Multiple deal wins and customer additions are likely to aid top-line growth for the first quarter.
Security Fabric architecture contributed to market share gain throughout 2018, along with improved sales and marketing. The trend is expected to have continued in the first quarter.
Strong demand for its portfolio of integrated secured SD-WAN and 5G products is likely to aid the upcoming quarterly results.
Moreover, its security processor unit, SPU, ASIC technology and a new high performance E-series product announced in the last reported quarter, are likely to act as tailwinds.
The Zacks Consensus Estimate for Product revenues is currently pegged at $161 million, indicating a 12.6% increase from the figure reported a year ago. The company’s high-end E-Series appliances are likely to aid its Product growth.
However, stiff competition from key network security players such as Cisco Systems (CSCO - Free Report) , Check Point (CHKP - Free Report) , Juniper Networks and Palo Alto Networks (PANW - Free Report) remains a headwind.
Fortinet currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>