Fortinet Earnings: Here’s Why Shares are Down Now

Fortinet Inc. (NASDAQ:FTNT) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.61%.

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Fortinet Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 9.09% to $0.10 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 15.82% to $135.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fortinet Inc. reported adjusted EPS income of $0.10 per share. By that measure, the company met the mean analyst estimate of $0.10. It beat the average revenue estimate of $135.62 million.

Quoting Management: “While we performed well in Asia Pacific and the U.S. enterprise sector, our first quarter results were affected primarily by macroeconomic and geopolitical challenges in Latin America and EMEA, a shortfall in U.S service provider business, and to a lesser extent some inventory shortages and product transition issues,” said Ken Xie, founder, president and chief executive officer. “Given the macro uncertainty, we are moving forward cautiously yet confidently, as the network security market remains healthy and Fortinet’s competitive position and product advantage remains strong.”

Key Stats (on next page)…

Revenue decreased 10.16% from $151.16 million in the previous quarter. EPS decreased 41.18% from $0.17 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.15 to a profit $0.13. For the current year, the average estimate has moved down from a profit of $0.61 to a profit of $0.57 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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