Fortinet (FTNT) earnings: expect 18% revenue growth

1:14 pm ET, 01 May 2019

Fortinet, Inc. (FTNT) is announcing earnings on May 02 after the market closes. Wondering what revenue and earnings will look like?

What should you expect from the upcoming earnings?

Revenue for the next quarter is expected to be $472M, which implies 18% growth rate year-over-year.

Earnings per share are expected to come in at $0.38. If this materializes, EPS will grow 15% year-over-year.

How did the stock do last month?

Over the last month, Fortinet (FTNT) returned +9.64%.

How is the stock valued?

Fortinet, Inc. (FTNT) forward P/E ratio is 38.59, and it’s high compared to its industry peers’ P/E ratio.

What do analysts say about the stock?

Fortinet (FTNT) average analyst price target is -6.71% below its current price ($93.42).

For the latest price and information on Fortinet, Inc., please visit Finstead and ask for "FTNT", "FTNT analysis" or "FTNT news".

Powered by Froala Editor

Fortinet, Inc. (FTNT) Stock Guide

Updated at: 9:42 pm ET, 17 Sep 2020

Before we start: if you're looking for FTNT stock price, you can quickly find it out by visiting Finny and typing "FTNT quote". If you're looking for a quick scoop on FTNT stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "FTNT". You'll get all this info in one place. Or you can just type "FTNT news" to get the latest stock news.

Looking to buy or sell Fortinet, Inc. (FTNT)? Interested in getting the full scoop on FTNT, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this FTNT stock guide, we'll address key questions about FTNT, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are FTNT earnings?
2. What is FTNT stock forecast (i.e., prediction)?
3. FTNT buy or sell? What is FTNT Finny Score?
4. What are the reasons to buy FTNT? Why should I buy FTNT stock?
5. What are the reasons to sell FTNT? Why should I sell FTNT stock?
6. What are FTNT key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are FTNT earnings?

FTNT trailing 12-month earnings per share (EPS) is $2.39.

Analyst Predictions

2. What is FTNT stock forecast (i.e., prediction)?

Based on FTNT analyst price targets, FTNT stock forecast is $139.36 (for a year from now). That means the average analyst price target for FTNT stock is $139.36. The prediction is based on 30 analyst estimates.

The low price target for FTNT is $91.00, while the high price target is $206.51.

FTNT analyst rating is Buy.

Analysis

3. FTNT buy or sell? What is FTNT Finny Score?

#{finnyScore:63}Our quantitative analysis shows 5 reasons to buy and 3 reasons to sell FTNT, resulting in Finny Score of 63.

4. What are the reasons to buy FTNT? Why should I buy FTNT stock?

Here are the reasons to buy FTNT stock:

  • With a growth of the "Internet of Things" and autonomous devices, spending on security appears poised to grow.
  • Given the highly fragmented nature of the security market, Fortinet has an opportunity to make marquee acquisitions and dramatically expand its attractiveness for large enterprises.
  • Overall, Fortinet’s push into the large enterprise market will improve the strength of its brand name at the lower end of the market.
  • FTNT quarterly revenue growth was 18.00%, higher than the industry and sector average revenue growth (1.11% and 0.89%, respectively). See FTNT revenue growth chart.
  • FTNT PEG ratio (P/E adjusted for growth) is 2.39, which is low compared to its industry peers’ PEG ratios. See FTNT PEG chart.
  • FTNT average analyst rating is Buy. See FTNT analyst rating chart.
  • FTNT average analyst price target ($139.36) is above its current price ($115.35). See FTNT price target chart.
  • FTNT cash to debt ratio is 35.26, higher than the average industry (0.16) and sector (0.17) cash to debt ratio. See FTNT cash to debt chart.

5. What are the reasons to sell FTNT? Why should I sell FTNT stock?

Let's look at the reasons to sell FTNT stock (i.e., the bear case):

  • The purchase of Fortinet's products is considered a discretionary expense by IT managers.
  • Fortinet is facing a potential threat from incumbent vendors such as Cisco and F5 Networks that are embedding security functionalities into their nonsecurity products such as routers and application delivery controllers.
  • The level of perceived threat to corporate networks affects overall IT security budgets. We expect a shift of IT expenditures on security to the other areas if negative cybersecurity news recedes.
  • FTNT profitability is declining. The YoY profit margin change was -0.42 percentage points. See FTNT profitability chart.
  • FTNT Price/Book ratio is 38.82, which is high compared to its industry peers’ P/B ratios. See FTNT forward Price/Book ratio chart.
  • FTNT short interest (days to cover the shorts) ratio is 3.15. The stock garners more short interest than the average industry, sector or S&P 500 stock. See FTNT short interest ratio chart.

Key Stats

6. What are FTNT key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for FTNT:

Metrics FTNT
Price $117.87
Average Price Target / Upside $139.36 / 18.23%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 5,845
Market Cap $21.12B
Forward P/E Ratio 38.05
Price/Book Ratio 8.97
Revenue (TTM) $2.35B
YoY Quarterly Revenue Growth 18.00%
Profit Margin 17.46%

If you liked this analysis, check out Stock Guides for other stocks.

Follow Us