Why Fortinet Shares Skyrocketed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Fortinet have skyrocketed today by as much as 25% after the network security specialist reported fourth-quarter earnings.
So what: Revenue during the quarter totaled $151.2 million, a 25% gain from a year ago. Non-GAAP earnings per share came in at $0.17. Both revenue and adjusted earnings results topped analyst forecasts, which would have been happy with $144.3 million in sales and a profit of $0.15 per share.
Now what: Topping off the figures, Fortinet also issued strong guidance for the upcoming year, predicting revenue in the range of $625 million to $635 million. That was ahead of Street forecasts of just $618.9 million. Nomura Securities has boosted its estimates on shares, increasing its price target from $24 to $26 on the strong outlook and expectation that growth will be sustainable.
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The article Why Fortinet Shares Skyrocketed originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
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