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What's in the Offing for Fortinet (FTNT) This Earnings Season?
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Fortinet (FTNT - Free Report) is scheduled to report first-quarter 2022 results on May 4.
For the first quarter of 2022, the company projects non-GAAP revenues between $865 million and $895 million. The Zacks Consensus Estimate for the same is pegged at $883.5 million, suggesting year-over-year growth of 24.4%.
Fortinet anticipates non-GAAP earnings from the continuing operations in the range of 75 cents-80 cents per share. The Zacks Consensus Estimate stands at 79 cents per share, suggesting a decline of 2.5% from the year-ago reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.3%.
Let’s see how things have shaped up before this announcement.
During the first quarter, FTNT is expected to have gained from the heightened demand for security and networking products amid the pandemic as a huge global workforce is working remotely. Its quarterly performance is likely to have benefited from the robust momentum in FortiGate virtual machines, which is driving the firm’s private and public cloud billings. Management forecast billings in the band of $1.05-$1.09 million for the January-March quarter.
FortiGuard security subscriptions and FortiCare technical support services are likely to have gained solid traction, aiding the company’s Services segment. The Zacks Consensus Estimate for quarterly Services revenues is pegged at $590 million, indicating a year-over-year improvement of 25.5%.
Fortinet’s first-quarter performance is likely to have benefited from higher global cybersecurity spending. The growing adoption of Software-Defined Wide Area Network (SD-WAN) solutions might have acted as a tailwind. Per Futuriom, the market size for SD-WAN solutions is likely to reach $4.6 billion by 2023 from $2.6 billion in 2021, witnessing a CAGR of 34%.
The rapid adoption of FortiGate-based secure SD-WAN offerings is anticipated to have supported Fortinet’s Product segment. The Zacks Consensus Estimate for Product revenues in the March-end quarter stands at $293 million, suggesting year-over-year growth of 21.6%.
However, increased hiring, mostly in sales and marketing, and mergers and acquisition-related spends are likely to have weighed on margins. Moreover, worldwide supply-chain constraints, including the backlog in Fabric products, are predicted to have hurt FTNT’s overall first-quarter performance.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Fortinet this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though Fortinet currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Fabrinet (FN - Free Report) , ON Semiconductor (ON - Free Report) and Simon Property Group (SPG - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Fabrinet is slated to report third-quarter fiscal 2022 results on May 2. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.87% at present. Fabrinet’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.53 per share, suggesting a year-over-year improvement of 26.5%. FN’s quarterly revenues are estimated to increase 20.1% year over year to $575.7 million.
ON carries a Zacks Rank #3 and has an Earnings ESP of +6.67%. The company is scheduled to report first-quarter 2022 results on May 2. ON’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.3%.
The Zacks Consensus Estimate for ON’s first-quarter earnings is pegged at $1.05 per share, indicating a year-over-year increase of a whopping 200%. The consensus mark for revenues stands at $1.91 billion, suggesting a year-over-year increase of 28.7%.
Simon Property currently carries a Zacks Rank #3 and has an Earnings ESP of +0.50%. The company is slated to report its first-quarter 2022 results on May 9. Simon Property’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for Simon Property’s first-quarter earnings stands at $2.74 per share, implying a year-over-year increase of 10.5%. SPG is estimated to report revenues of $1.33 billion, which suggests growth of 7.3% from the year-ago quarter.
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What's in the Offing for Fortinet (FTNT) This Earnings Season?
Fortinet (FTNT - Free Report) is scheduled to report first-quarter 2022 results on May 4.
For the first quarter of 2022, the company projects non-GAAP revenues between $865 million and $895 million. The Zacks Consensus Estimate for the same is pegged at $883.5 million, suggesting year-over-year growth of 24.4%.
Fortinet anticipates non-GAAP earnings from the continuing operations in the range of 75 cents-80 cents per share. The Zacks Consensus Estimate stands at 79 cents per share, suggesting a decline of 2.5% from the year-ago reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.3%.
Let’s see how things have shaped up before this announcement.
Fortinet, Inc. Price and EPS Surprise
Fortinet, Inc. price-eps-surprise | Fortinet, Inc. Quote
Factors to Note
During the first quarter, FTNT is expected to have gained from the heightened demand for security and networking products amid the pandemic as a huge global workforce is working remotely. Its quarterly performance is likely to have benefited from the robust momentum in FortiGate virtual machines, which is driving the firm’s private and public cloud billings. Management forecast billings in the band of $1.05-$1.09 million for the January-March quarter.
FortiGuard security subscriptions and FortiCare technical support services are likely to have gained solid traction, aiding the company’s Services segment. The Zacks Consensus Estimate for quarterly Services revenues is pegged at $590 million, indicating a year-over-year improvement of 25.5%.
Fortinet’s first-quarter performance is likely to have benefited from higher global cybersecurity spending. The growing adoption of Software-Defined Wide Area Network (SD-WAN) solutions might have acted as a tailwind. Per Futuriom, the market size for SD-WAN solutions is likely to reach $4.6 billion by 2023 from $2.6 billion in 2021, witnessing a CAGR of 34%.
The rapid adoption of FortiGate-based secure SD-WAN offerings is anticipated to have supported Fortinet’s Product segment. The Zacks Consensus Estimate for Product revenues in the March-end quarter stands at $293 million, suggesting year-over-year growth of 21.6%.
However, increased hiring, mostly in sales and marketing, and mergers and acquisition-related spends are likely to have weighed on margins. Moreover, worldwide supply-chain constraints, including the backlog in Fabric products, are predicted to have hurt FTNT’s overall first-quarter performance.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Fortinet this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though Fortinet currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Fabrinet (FN - Free Report) , ON Semiconductor (ON - Free Report) and Simon Property Group (SPG - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Fabrinet is slated to report third-quarter fiscal 2022 results on May 2. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.87% at present. Fabrinet’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.53 per share, suggesting a year-over-year improvement of 26.5%. FN’s quarterly revenues are estimated to increase 20.1% year over year to $575.7 million.
ON carries a Zacks Rank #3 and has an Earnings ESP of +6.67%. The company is scheduled to report first-quarter 2022 results on May 2. ON’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.3%.
The Zacks Consensus Estimate for ON’s first-quarter earnings is pegged at $1.05 per share, indicating a year-over-year increase of a whopping 200%. The consensus mark for revenues stands at $1.91 billion, suggesting a year-over-year increase of 28.7%.
Simon Property currently carries a Zacks Rank #3 and has an Earnings ESP of +0.50%. The company is slated to report its first-quarter 2022 results on May 9. Simon Property’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for Simon Property’s first-quarter earnings stands at $2.74 per share, implying a year-over-year increase of 10.5%. SPG is estimated to report revenues of $1.33 billion, which suggests growth of 7.3% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.