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HomeBusinessFortinet Shares Drop 23 percent on Guidance Cut

Fortinet Shares Drop 23 percent on Guidance Cut

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Fortinet (NASDAQ:FTNT) reported a third-quarter EPS of $0.41, beating the analyst prediction by $0.05. However, its quarterly revenue of $1.33 billion fell slightly short of the $1.35 billion consensus.
Despite the EPS beat, Fortinet’s shares plunged over 23% intra-day due to its billings and revenue forecasts not meeting analyst expectations.
For the forthcoming year, Fortinet has set its revenue target between $5.27 billion and $5.33 billion. This figure is below the analysts’ expectations of $5.4 billion in revenue.
The company’s billings outlook, ranging from $6.10 billion to $6.24 billion, also falls short of the earlier range of $6.49 billion to $6.59 billion, as well as the consensus estimate of $6.54 billion.
Looking ahead to the fourth quarter, Fortinet anticipates an adjusted EPS between 42 and 44 cents, marginally surpassing the 42-cent estimate. However, its revenue forecast for the same period, set between $1.38 billion and $1.44 billion, does not meet the $1.5 billion consensus.

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