FBR's Ives Calls Fortinet's Q2 'Eye Popping'

Shares of Fortinet Inc (NASDAQ: FTNT) were trading higher by more than 11 percent during Thursday's pre-market trading session after the company reported its second quarter results on Wednesday. The company earned $0.11 in its second quarter, two cents higher than analysts were expecting. Revenue of $239.8 million was also higher than the $227.74 million analysts were expecting.In a report published Thursday, FBR & Co. analyst Daniel Ives described Fortinet's results as "eye popping" as it "handily" beat the Street's estimates. The company's "robust" performance in the quarter further suggested there are no signs it is slowing its increasing product/service proliferation in the "fast-growing next-generation" cybersecurity space."In a nutshell, Fortinet delivered another stellar quarter/outlook and remains well positioned for the next chapter of growth, with improved profitability on the horizon over the coming years, in our view, as management scales the business and looks to leverage investments (sales and marketing) as it continues to fire on all cylinders and take market share," Ives wrote.Fortinet also issued top-line and billings guidance for the September quarter and full fiscal year that were above expectations as the company's sales force ramp is resulting in further penetrating existing customers while also adding new ones. As a result, the analyst boosted his full year fiscal 2015 revenue estimate to $1.01 billion from a previous $938.9 million with an unchanged earnings per share estimate of $0.52.For fiscal 2016, the analyst is now projecting the company to earn $0.76 per share (versus a prior estimate of $0.70) on revenue of $1.19 billion (versus a prior estimate of $1.11 billion).Shares remain Outperform rated with a price target raised to $52 from a previous $44 due to "increased estimates and confidence in the name."