Fortinet (FTNT) on Wednesday reported third-quarter earnings and revenue that topped analyst estimates, but the size of its revenue beat disappointed and its billings guidance missed views. FTNT stock took a dive.
Fortinet earnings on an adjusted basis were 33 cents per share, up 65% from a year earlier. Revenue climbed 33% to $1.15 billion. Analysts expected Fortinet earnings of 27 cents a share on sales of $1.12 billion for the period ended Sept 30.
The cybersecurity firm said billings, a sales growth metric, rose 33% to $1.41 billion, in line with estimates.
Fortinet stock plunged 14.9% to 45.30 in extended trading on the stock market today.
FTNT Stock: Guidance Meets Expectations
For the current quarter ending in December, the Sunnyvale, Calif.-based company forecasts revenue in a range of $1.275 billion to $1.315 billion. Analysts had projected revenue of $1.27 billion. Fortinet said it expects billings in a range of $1.66 billion to $1.72 billion, missing estimates of $1.74 billion.
FTNT stock had retreated 20% this year ahead of the earnings report. In the June quarter, the size of Fortinet’s beat also disappointed some investors.
The company competes in the firewall network security market against Palo Alto Networks (PANW), Check Point Software Technologies (CHKP) and others. Firewalls block online intrusions and monitor web-based apps.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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