Fortinet Inc (NASDAQ: FTNT) stock surged over 10.2% on 2nd August 2019 (As of 11:37 am GMT-4; Source: Google finance) driven by solid results for the second quarter of FY 19 and issued a strong outlook. In the second quarter of 2019, cash flow from operations was $195.1 million compared to $142.2 million in the same quarter of 2018. Free cash flow was $177.8 million during the second quarter of 2019, compared to $130.6 million for the same quarter of 2018.
FTNT in the second quarter of FY 19 has reported the adjusted earnings per share of 58 cents, beating the analysts’ estimates for the adjusted earnings per share of 50 cents. The company had reported the adjusted revenue growth of 18 percent to $521.7 million in the second quarter of FY 19, beating the analysts’ estimates for revenue of $511.1 million. Product revenue was $189.9 million for the second quarter of 2019, an increase of 14% compared to $166.3 million for the same quarter of 2018. Service revenue was $331.8 million for the second quarter of 2019, an increase of 21% compared to $275.0 million for the same quarter of 2018. Total billings were $622.4 million for the second quarter of 2019, an increase of 21% compared to $513.4 million for the same quarter of 2018. Total deferred revenue was $1.87 billion as of June 30, 2019, an increase of 27% compared to $1.47 billion as of June 30, 2018.
Fortinet expects adjusted earnings to be in the range of 55 cents to 57 cents a share on revenue expected to be in the range of $525 million to $540 million for the third quarter, and $2.23 to $2.26 a share on revenue of $2.1 billion to $2.12 billion for the year 2019. Analysts had forecast earnings of 53 cents a share on revenue of $523.9 million for the third quarter, and $2.14 a share on revenue of $2.09 billion for the year.
For the third quarter 2019, Billings is expected to be in the range of $600 million to $615 million. Non-GAAP gross margin is expected to be in the range of 75.5% to 76.5% and Non-GAAP operating margin is expected to be in the range of 23.0% to 23.5%
Meanwhile, FTNT has announced three new high-performance FortiGate Next-Generation Firewalls (NGFWs), comprised of FortiGate 1100E, FortiGate 2200E, and FortiGate 3300E. These new offerings support Security-Driven Networking and enable organizations to securely accelerate their on-ramp to the cloud.