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The cybersecurity firm projects revenues between $1.315 billion and $1.375 billion. The Zacks Consensus Estimate for the same is pegged at $1.35 billion, suggesting year-over-year growth of 17.3%.
The company forecasts third-quarter non-GAAP earnings in the range of 35-37 cents per share. The consensus mark is pegged at 37 cents per share, implying growth of 12.12% from the year-ago figure of 24 cents.
Fortinet’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 17.06%.
For the July-September quarter, Fortinet anticipates billings in the band of $1.56-$1.62 billion. The heightened demand for its security and networking products in the prevailing hybrid working environment and the accelerated emergence of digital technologies might have benefited the to-be-reported quarter’s performance. Our model estimate for Billings in the third quarter is pegged at $1.594 billion, suggesting year-over-year growth of 13%.
The rapid adoption of FortiGate-based secure Software-Defined Wide Area Network (SD-WAN) offerings is likely to have supported FTNT’s Product segment. Our model estimates Product revenues in the third quarter to be $499.7 million, suggesting year-over-year growth of 6.6%.
FortiGuard security subscriptions and FortiCare technical support services are likely to have gained solid traction, favoring the company’s Services segment. Our model estimate for quarterly Services revenues is pegged at $843.3 million, indicating a year-over-year improvement of 23.9%.
Fortinet’s third-quarter performance is likely to have gained from higher global cybersecurity spending. The growing adoption of SD-WAN solutions might have acted as a tailwind. Per MarketsandMarkets, the market size for SD-WAN solutions is likely to reach $13.7 billion by 2027 from $3.4 billion in 2022, witnessing a CAGR of 31.9%.
As one of the broadest security service providers globally, Fortinet’s FortiTrust, a unified solution with a single user-based licensing model for flexible consumption across networks, endpoints and clouds, has been witnessing solid traction. This might have driven the company’s private and public cloud billings.
However, softness in overall IT spending is likely to negatively impact FTNT’s third-quarter results. Organizations are pushing back their big and expensive IT investments amid growing recessionary concerns.
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.
Although FTNT carries a Zacks Rank #3 at present, it has an Earnings ESP of -4.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, NVIDIA Corporation (NVDA - Free Report) , Palantir Technologies (PLTR - Free Report) and Synaptics (SYNA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA sports a Zacks Rank #1 and has an Earnings ESP of +6.93% at present. The company is scheduled to report third-quarter fiscal 2023 results on Nov 21. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same on one occasion, the average surprise being 9.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s third-quarter earnings is pegged at $3.34 per share, indicating a year-over-year increase of 475.9%. The consensus mark for revenues is pinned at $16.12 billion, suggesting a year-over-year surge of 171.7%.
Palantir carries a Zacks Rank #2 and has an Earnings ESP of +4.35% at present. The company is scheduled to report third-quarter 2023 results on Nov 2. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 2.1%.
The Zacks Consensus Estimate for Palantir’s third-quarter earnings is pegged at 6 cents per share, indicating a year-over-year improvement of 500%. It is estimated to report revenues of $555 million, which suggests an increase of approximately 16.1% from the year-ago quarter.
Synaptics is slated to report first-quarter fiscal 2024 results on Nov 9. The company has a Zacks Rank #2 and an Earnings ESP of +3.54% at present. Its earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.6%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 38 cents per share, suggesting a decrease of 89.2% from the year-ago quarter’s earnings of $3.52. Synaptics’ quarterly revenues are estimated to decline 48.2% year over year to $232 million.
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Fortinet (FTNT) to Report Q3 Earnings: What's in the Offing?
Fortinet (FTNT - Free Report) is scheduled to report third-quarter 2023 results on Nov 2, after market close.
The cybersecurity firm projects revenues between $1.315 billion and $1.375 billion. The Zacks Consensus Estimate for the same is pegged at $1.35 billion, suggesting year-over-year growth of 17.3%.
The company forecasts third-quarter non-GAAP earnings in the range of 35-37 cents per share. The consensus mark is pegged at 37 cents per share, implying growth of 12.12% from the year-ago figure of 24 cents.
Fortinet’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 17.06%.
Fortinet, Inc. Price and EPS Surprise
Fortinet, Inc. price-eps-surprise | Fortinet, Inc. Quote
Factors to Consider
For the July-September quarter, Fortinet anticipates billings in the band of $1.56-$1.62 billion. The heightened demand for its security and networking products in the prevailing hybrid working environment and the accelerated emergence of digital technologies might have benefited the to-be-reported quarter’s performance. Our model estimate for Billings in the third quarter is pegged at $1.594 billion, suggesting year-over-year growth of 13%.
The rapid adoption of FortiGate-based secure Software-Defined Wide Area Network (SD-WAN) offerings is likely to have supported FTNT’s Product segment. Our model estimates Product revenues in the third quarter to be $499.7 million, suggesting year-over-year growth of 6.6%.
FortiGuard security subscriptions and FortiCare technical support services are likely to have gained solid traction, favoring the company’s Services segment. Our model estimate for quarterly Services revenues is pegged at $843.3 million, indicating a year-over-year improvement of 23.9%.
Fortinet’s third-quarter performance is likely to have gained from higher global cybersecurity spending. The growing adoption of SD-WAN solutions might have acted as a tailwind. Per MarketsandMarkets, the market size for SD-WAN solutions is likely to reach $13.7 billion by 2027 from $3.4 billion in 2022, witnessing a CAGR of 31.9%.
As one of the broadest security service providers globally, Fortinet’s FortiTrust, a unified solution with a single user-based licensing model for flexible consumption across networks, endpoints and clouds, has been witnessing solid traction. This might have driven the company’s private and public cloud billings.
However, softness in overall IT spending is likely to negatively impact FTNT’s third-quarter results. Organizations are pushing back their big and expensive IT investments amid growing recessionary concerns.
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.
Although FTNT carries a Zacks Rank #3 at present, it has an Earnings ESP of -4.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, NVIDIA Corporation (NVDA - Free Report) , Palantir Technologies (PLTR - Free Report) and Synaptics (SYNA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA sports a Zacks Rank #1 and has an Earnings ESP of +6.93% at present. The company is scheduled to report third-quarter fiscal 2023 results on Nov 21. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same on one occasion, the average surprise being 9.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s third-quarter earnings is pegged at $3.34 per share, indicating a year-over-year increase of 475.9%. The consensus mark for revenues is pinned at $16.12 billion, suggesting a year-over-year surge of 171.7%.
Palantir carries a Zacks Rank #2 and has an Earnings ESP of +4.35% at present. The company is scheduled to report third-quarter 2023 results on Nov 2. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 2.1%.
The Zacks Consensus Estimate for Palantir’s third-quarter earnings is pegged at 6 cents per share, indicating a year-over-year improvement of 500%. It is estimated to report revenues of $555 million, which suggests an increase of approximately 16.1% from the year-ago quarter.
Synaptics is slated to report first-quarter fiscal 2024 results on Nov 9. The company has a Zacks Rank #2 and an Earnings ESP of +3.54% at present. Its earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.6%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 38 cents per share, suggesting a decrease of 89.2% from the year-ago quarter’s earnings of $3.52. Synaptics’ quarterly revenues are estimated to decline 48.2% year over year to $232 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.