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Sunnyvale, California-based Fortinet, Inc. (FTNT) provides network security appliances and unified threat management network security solutions to enterprises, service providers, and government entities. With a market cap of $45.5 billion, Fortinet operations span various countries in North America, Latin America, EMEA, and Asia-Pacific. It is expected to announce its Q2 earnings after the market closes on Tuesday, Aug. 6.
Ahead of the event, analysts expect Fortinet to report a profit of $0.33 per share, up 6.5% from $0.31 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in the past four quarters. Its EPS for the last reported quarter grew 25.8% annually to $0.39, exceeding the consensus estimates by 25.8%.
Looking ahead to fiscal 2024, analysts expect Fortinet to report an EPS of $1.47, mirroring the year-ago figure. Its fiscal 2025 EPS is projected to grow 9.5% annually to $1.61.
FTNT stock has plunged 22.4% over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 25.6% gains and the S&P 500 Technology Sector SPDR’s (XLK) 34.4% returns over the same time frame.
FTNT’s lackluster performance stems from slumping firewall sales, struggles in shifting to cloud services, and heightened competition in cybersecurity. After its Q1 earnings results on May 2, the stock plummeted 9.7% despite surpassing earnings projections and achieving a record operating margin and strong cash flow. Fortinet faced challenges, including a 6% decline in total billings driven by decreased firewall sales. Investor concerns persisted about sustaining competitiveness in a challenging market landscape.
The consensus opinion on Fortinet stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 36 analysts covering the stock, 11 recommend a “Strong Buy,” two advise a “Moderate Buy,” and 23 analysts are playing it safe with a “Hold” rating.
The average target price for Fortinet is $70.53, indicating a potential upside of 18.4% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
