Shares in Fortinet jumped on December-quarter earnings that topped analyst estimates. The cybersecurity firm's 2023 revenue and billings guidance for FTNT stock also beat expectations.
Fortinet reported fourth quarter earnings after the market close on Tuesday. Other cybersecurity stocks rallied Wednesday on the Fortinet earnings and guidance.
For the fourth quarter, Fortinet earnings on an adjusted basis came in at 44 cents, up 76% from a year earlier. Also, revenue climbed 33% to $1.28 billion, just below estimates.
However, analysts expected Fortinet earnings of 39 cents a share on sales of $1.295 billion for the period ended Dec. 31.
Additionally, the Sunnyvale, Calif.-based firm said billings, a sales growth metric, rose 32% to $1.72 billion compared with analyst estimates of $1.69 billion.
Fortinet Stock: Guidance Tops Views
For full-year 2023, Fortinet said it expects per-share earnings of $1.40 at the midpoint of its outlook. The cybersecurity firm forecast revenue in a range of $5.37 billion to $5.43 billion.
Analysts had projected earnings of $1.40 per share on revenue of $5.34 billion.
Also, Fortinet said it expects 2023 billings in a range of $6.71 billion to $6.79 billion. Analysts had predicted $6.685 billion.
"The company saw strong demand trends as customers are finding new use-cases for firewalls and other deployment areas that are causing volumes to increase even as Fortinet has benefited from prior pricing increases," said William Blair analyst Jonathan Ho in a report.
Ho added: "This has led to a record pipeline of opportunities, as Fortinet is selling larger deals based on a converged networking and security value proposition across a broader set of use-cases."
Fortinet stock climbed 13.8% to 61.21 in early trading on the stock market today.
Shares Up 10% This Year
Heading into the Fortinet earnings report, the cybersecurity stock was up 10% in 2023.
The company competes in the firewall network security market versus Palo Alto Networks, Check Point Software Technologies and others. Firewalls block online intrusions and monitor web-based apps.
FTNT stock holds a Relative Strength Rating of 50 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
