Yahoo Finance Fortinet (FTNT) to Report Q4 Earnings: What's in the Offing?
Fortinet FTNT is scheduled to report its fourth-quarter 2022 results after market close on Feb 7.
The cybersecurity firm projects revenues between $1.275 billion and $1.135 billion. The Zacks Consensus Estimate for the same is pegged at $1.29 billion, suggesting year-over-year growth of 34.2%.
The company forecasts fourth-quarter non-GAAP earnings in the range of 38-40 cents per share. The consensus mark stands at 39 cents per share, suggesting growth of 56% from the year-ago figure of 25 cents.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.6%.
Fortinet, Inc. Price and EPS Surprise
Fortinet, Inc. price-eps-surprise | Fortinet, Inc. Quote
Factors to Consider
For the October-December quarter, Fortinet anticipates billings in the band of $1.665 billion-$1.720 billion. The heightened demand for its security and networking products amid the post-pandemic reality of remote working and the accelerated emergence of digital technologies might have benefited the to-be-reported quarter’s performance.
The rapid adoption of FortiGate-based secure Software-Defined Wide Area Network (“SD-WAN”) offerings is likely to have supported Fortinet’s Product segment. The Zacks Consensus Estimate for Product revenues in the December-end quarter stands at $534 million, suggesting year-over-year growth of 40.9%.
FortiGuard security subscriptions and FortiCare technical support services are likely to have gained solid traction, favoring the company’s Services segment. The Zacks Consensus Estimate for quarterly Services revenues is pegged at $756 million, indicating a year-over-year improvement of 29.2%.
As one of the broadest security service providers globally, Fortinet’s FortiTrust, a unified solution with a single user-based licensing model for flexible consumption across networks, endpoints and clouds, has been witnessing solid traction. This might have driven the company’s private and public cloud billings.
Fortinet’s fourth-quarter performance is likely to have gained from higher global cybersecurity spending. The growing adoption of SD-WAN solutions might have acted as a tailwind. Per Future Market Insights, the market size for SD-WAN solutions is likely to reach $53.8 billion by 2032 from $3.4 billion in 2022, witnessing a CAGR of 31.6% during the 2022-2032 period.
However, worldwide supply-chain constraints, including the backlog in Fabric products, may have hurt FTNT’s overall fourth-quarter performance.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Fortinet this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though FTNT currently carries a Zacks Rank of 3, it has an Earnings ESP of -2.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Analog Devices ADI, Check Point Software CHKP and Cisco Systems CSCO have the right combination of elements to post an earnings beat in their upcoming releases.
Analog Devices is slated to report first-quarter fiscal 2023 results on Feb 15. The company has a Zacks Rank #3 and an Earnings ESP of +1.13% at present. ADI’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 7.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the year-ago quarter’s earnings of $1.94. Analog Devices’ quarterly revenues are estimated to increase 17.3% year over year to $3.15 billion.
Check Point carries a Zacks Rank #3 and has an Earnings ESP of +1.22%. The company is scheduled to report fourth-quarter 2022 results on Feb 13. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 3.6%.
The Zacks Consensus Estimate for Check Point’s fourth-quarter earnings stands at $2.35 per share, implying a year-over-year increase of 4.4%. It is estimated to report revenues of $633.6 million, which suggests growth of 5.8% from the year-ago quarter.
Cisco carries a Zacks Rank #3 and has an Earnings ESP of +1.66%. The company is slated to report second-quarter fiscal 2023 results on Feb 15. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.1%.
The Zacks Consensus Estimate for CSCO’s fiscal second-quarter earnings is pegged at 86 per share, indicating a year-over-year increase of 2.4%. The consensus mark for revenues stands at $13.43 billion, suggesting a year-over-year increase of 5.6%.
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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
