Fortinet Outruns Estimates Again
Fortinet (NAS: FTNT) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Fortinet beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share shrank.
Margins dropped across the board.
Fortinet tallied revenue of $120.9 million. The 18 analysts polled by S&P Capital IQ predicted sales of $116.5 million. Sales were 29% higher than the prior-year quarter's $93.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.14. The 21 earnings estimates compiled by S&P Capital IQ averaged $0.12 per share on the same basis. GAAP EPS of $0.10 for Q4 were the same as the prior-year quarter's $0.10 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 73.1%, 100 basis points worse than the prior-year quarter. Operating margin was 21.9%, 20 basis points worse than the prior-year quarter. Net margin was 13.6%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $113.5 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $501.9 million. The average EPS estimate is $0.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 82 members out of 92 rating the stock outperform, and 10 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Fortinet a green thumbs-up, and three 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 $25.94.
New technology paradigms and mobile devices are driving the next wave of computing. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does Fortinet fit in? What's the fortune-making change? Check out "The Two Words Bill Gates Doesn't Want You to Hear." Click here for instant access to this free report.
- Add Fortinet to My Watchlist.
At the time this article was published 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.