Recap: Fortinet Q2 Earnings

Shares of Fortinet FTNT fell 7.39% in after-market trading after the company reported Q2 results.

Quarterly Results

Earnings per share rose 41.38% over the past year to $0.82, which beat the estimate of $0.65.

Revenue of $615,500,000 up by 17.98% year over year, which beat the estimate of $599,040,000.

Looking Ahead

For the third quarter of 2020, Fortinet currently expects:

• Revenue in the range of $630 million to $645 million
• Billings in the range of $705 million to $730 million
• Non-GAAP gross margin in the range of 78.0% to 79.0%
• Non-GAAP operating margin in the range of 25.5% to 26.5%
• Diluted non-GAAP net income per share in the range of $0.76 to $0.78, assuming a non-GAAP effective tax rate of 22%. This assumes a diluted share count of 168 million to 170 million.

Conference Call Details

Date: Aug 06, 2020

Time: 04:30 PM

ET Webcast URL: https://edge.media-server.com/mmc/p/bn42ir3m

Recent Stock Performance

52-week high: $151.95

Company's 52-week low was at $70.20

Price action over last quarter: Up 3.61%

Company Description

Fortinet is a cybersecurity vendor that sells products, support, and services to small and midsize businesses, enterprises, and government entities. Its products include unified threat management appliances, firewalls, network security, and its security platform, Security Fabric. Services revenue is primarily from FortiGuard security subscriptions and FortiCare technical support. At the end of 2019, products were 37% of revenue and services were 63% of sales. The California-based company sells products worldwide, with the Americas representing 43% of sales in 2019.