Fortinet Inc (NASDAQ: FTNT) stock generates more than 20% post solid earnings

Free $100 Forex No-Deposit Bonus

Fortinet Inc (NASDAQ: FTNT) stock rose over 20.2% on 7th may, 2020  (as of 12:08 pm GMT-4; Source: Google finance) after the company posted better than expected results for the first quarter of FY 20. The company has reported first-quarter net income of $104 million, compared to $58.8 million, in the year-ago period. Billings grew by 21% to $668 million, mainly due to solid execution and growth across all three major regions. The shipment of unit rose 30% in the first quarter, due to the home secure VPN and secure SD-WAN product built with the ASIC-powered appliance. Further, the demand for broad integrated automated security fabric platform, especially, first quarter driven broad integrated first quarter driven the FortiClient, FortiAuthenticator, and FortiToken was very strong.

Meanwhile, during the first quarter, the company released FortiOS 6.4 with over 350 new features, including new automation, stability, performance and AI capability, providing full protection across entire digital infrastructure. Included in the FortiOS 6.4 are several enhancements to the secure SD-WAN offerings.

FTNT in the first quarter of FY 20 has reported the adjusted earnings per share of 60 cents, beating the analysts’ estimates for the adjusted earnings per share of 50 cents, according to analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 22 percent to $576.9 million in the first quarter of FY 20, beating the analysts’ estimates for revenue of $556.7 million. The fabric and cloud segment revenue growth was more than 24%, and FortiGate network security revenue posted growth of 21%. Both the fabric and FortiGate Network security segments growth had benefitted from the secure SD-WAN solutions. Product revenue rose 18% to $192 million, on the back of strong demand for the FortiGate appliances, secure SD-WAN offering, integrated fabric platform appliance and software solutions, as well as the embedded and stand-alone work-from-home security solutions. Service revenue rose 24% to $385 million, which formed 67% of total revenue. More than 90% of service revenue was from deferred revenue at the beginning of the quarter and continues to provide an increased level of revenue predictability. FortiGuard security subscription revenue rose 25% to $211 million.

Fortinet expects adjusted earnings to be in the range of 64 cents to 66 cents a share on revenue expected to be in the range of $590 million to $605 million, while analysts had forecast 60 cents a share on revenue of $598.2 million.

On the other hand, during the quarter, the company had signed a seven-year mutual covenant not to sue agreement with a competitor related to the patent portfolio in return for a $50 million cash payment to Fortinet.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.