Fortinet (NASDAQ:FTNT) Issues FY24 Earnings Guidance

Fortinet (NASDAQ:FTNT) issued an update on its FY24 earnings guidance on Thursday morning. The company provided earnings per share guidance of $1.73 to $1.79 for the period, compared to the consensus earnings per share estimate of $1.70. The company issued revenue guidance of $5.745 billion to $5.845 billion, compared to the consensus revenue estimate of $5.78 billion. Fortinet also updated its Q2 guidance to $0.39-0.41 EPS.

Fortinet Stock Down 9.7 %

Shares of FTNT stock traded down $6.32 on Friday, hitting $58.88. 15,896,615 shares of the stock were exchanged, compared to its average volume of 4,338,557. The business has a 50-day moving average of $67.53 and a 200 day moving average of $61.92. Fortinet has a fifty-two week low of $44.12 and a fifty-two week high of $81.24. The firm has a market capitalization of $44.94 billion, a P/E ratio of 38.48, a price-to-earnings-growth ratio of 2.61 and a beta of 1.08. The company has a current ratio of 1.19, a quick ratio of 1.06 and a debt-to-equity ratio of 13.38.

Fortinet (NASDAQ:FTNT) last issued its quarterly earnings results on Thursday, May 2nd. The software maker reported $0.43 EPS for the quarter, topping the consensus estimate of $0.38 by $0.05. The firm had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.34 billion. Fortinet had a net margin of 22.23% and a negative return on equity of 5,061.85%. The company’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.29 EPS. Equities analysts anticipate that Fortinet will post 1.4 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Citigroup downgraded Fortinet from a buy rating to a neutral rating and boosted their price target for the stock from $60.00 to $62.00 in a research report on Tuesday, January 9th. Jefferies Financial Group reduced their price objective on shares of Fortinet from $75.00 to $70.00 and set a hold rating for the company in a research report on Thursday, April 18th. Stifel Nicolaus increased their price objective on shares of Fortinet from $52.00 to $78.00 and gave the company a hold rating in a research report on Wednesday, February 7th. Piper Sandler reduced their target price on shares of Fortinet from $75.00 to $70.00 and set a neutral rating for the company in a report on Friday. Finally, Robert W. Baird lowered their price target on shares of Fortinet from $81.00 to $75.00 and set an outperform rating on the stock in a report on Friday. Two analysts have rated the stock with a sell rating, twenty have given a hold rating and twelve have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of Hold and a consensus price target of $70.68.

Insiders Place Their Bets

In related news, VP Michael Xie sold 24,710 shares of the firm’s stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $64.48, for a total value of $1,593,300.80. Following the sale, the vice president now directly owns 10,867,018 shares of the company’s stock, valued at $700,705,320.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In related news, VP Michael Xie sold 24,710 shares of the company’s stock in a transaction that occurred on Thursday, May 2nd. The shares were sold at an average price of $64.48, for a total transaction of $1,593,300.80. Following the completion of the transaction, the vice president now directly owns 10,867,018 shares in the company, valued at approximately $700,705,320.64. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Ken Xie sold 23,694 shares of the firm’s stock in a transaction that occurred on Tuesday, March 12th. The shares were sold at an average price of $71.40, for a total transaction of $1,691,751.60. Following the completion of the sale, the chief executive officer now owns 48,625,005 shares in the company, valued at approximately $3,471,825,357. The disclosure for this sale can be found here. Insiders sold 118,480 shares of company stock worth $8,021,556 over the last three months. Insiders own 17.54% of the company’s stock.

Fortinet Company Profile

Fortinet, Inc provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products.