Shares of Fortinet hovered around the break-even point Friday after the company reported first-quarter results that topped analyst estimates. FTNT stock climbed as the cybersecurity firm's sales outlook also came in above views.
Reporting after the market close on Thursday, Fortinet said earnings on an adjusted basis were 34 cents, up 79% from a year earlier. Also, revenue climbed 32% to $1.26 billion.
Analysts expected Fortinet earnings of 29 cents a share on sales of $1.2 billion for the period ended March 31.
Additionally, the Sunnyvale, Calif.-based firm said billings, a sales growth metric, rose 30% to $1.5 billion. Analysts had estimated billings of $1.44 billion.
Fortinet stock rose 5.6% to close at 64.59 on the stock market today. Analysts have debated how well cybersecurity stocks would hold up if the economy weakens.
Also, some analysts have been concerned Fortinet's growth is slowing in Secure Access Service Edge, or SASE. Cloud-based SASE services replace less secure virtual public networks, or VPNs. Fortinet sells SASE services through telecom service providers.
Fortinet Stock: Guidance Tops Views
For the June quarter, Fortinet predicted revenue of $1.3 billion and billings of $1.58 billion. Analysts had projected sales of $1.275 billion on billings of $1.57 billion.
Meanwhile, Fortinet's board of directors has authorized an additional $1 billion increase in the company's stock repurchase program. As of May 4, Fortinet said it has $1.53 billion remaining in the buyback fund.
Heading into the Fortinet earnings report, the cybersecurity stock was up 25% in 2023. But shares had retreated 11% from a high of 69.07 posted on April 14. In Thursday's regular session, shares rose 1.1%.
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.
Further, FTNT stock holds a Relative Strength Rating of 86 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.
