Fortinet Beats on Revenue, Matches Expectations on EPS

Before you go, we thought you'd like these...
Before you go close icon

Fortinet (NAS: FTNT) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Fortinet beat expectations on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.


Margins dropped across the board.

Revenue details
Fortinet notched revenue of $129.0 million. The 21 analysts polled by S&P Capital IQ expected to see revenue of $126.2 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $103.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.12. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. GAAP EPS of $0.08 for Q2 were 11% lower than the prior-year quarter's $0.09 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 71.2%, 300 basis points worse than the prior-year quarter. Operating margin was 16.2%, 160 basis points worse than the prior-year quarter. Net margin was 10.8%, 330 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $136.1 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $525.8 million. The average EPS estimate is $0.52.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 86 members out of 95 rating the stock outperform, and nine members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Fortinet a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fortinet is outperform, with an average price target of $29.60.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Fortinet makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.

The article Fortinet Beats on Revenue, Matches Expectations on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners