FTNT Stock: Fortinet Earnings, Revenue Top Estimates On Cybersecurity Resilience

Bucking a two-week selloff heading into its earnings report, Fortinet (FTNT) on Thursday reported first-quarter profit, revenue and billings that topped analyst estimates. FTNT stock rose as the cybersecurity firm’s sales outlook also came in above views.

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Reporting after the market close, Fortinet said earnings on an adjusted basis were 34 cents, up 79% from a year earlier. Also, revenue climbed 32% to $1.26 billion.

Analysts expected Fortinet earnings of 29 cents a share on sales of $1.2 billion for the period ended March 31.

Additionally, the Sunnyvale, Calif.-based firm said billings, a sales growth metric, rose 30% to $1.5 billion. Analysts had estimated billings of $1.44 billion.

Fortinet Stock: Guidance Tops Views

Fortinet stock climbed 4% to 63.60 in extended trading on the stock market today. Analysts have debated how well cybersecurity stocks would hold up if the economy weakens.

For the June quarter, Fortinet predicted revenue of $1.3 billion and billings of $1.58 billion. Analysts had projected sales of $1.275 billion on billings of $1.57 billion.

Heading into the Fortinet earnings report, the cybersecurity stock was up 25% in 2023. But shares had retreated 11% from a high of 69.07 posted on April 14. In Thursday’s regular session, shares rose 1.1%.

The company competes in the firewall network security market versus Palo Alto Networks (PANW), Check Point Software Technologies (CHKP) and others. Firewalls block online intrusions and monitor web-based apps.

Further, FTNT stock holds a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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