Fortinet (NASDAQ:FTNT) shares fell as much as 18% in after-hours trading after the cybersecurity company reported weaker-than-expected billings and revenue for the second quarter.
This underperformance prompted the management to lower the full-year forecast. Fortinet now sees FY revenue at $5.4 billion, down from the prior $5.46B and from the consensus of $5.47B. Full-year billings are now seen at $6.54B, down from the prior guidance of $6.78B, and the consensus of $6.79B.
“As a leading cybersecurity platform and secure networking vendor, we remain well-positioned for strong long-term growth as companies increasingly look to consolidate vendors and point products,” said Ken Xie, Founder, Chairman and Chief Executive Officer at Fortinet.
“We are one of the top market share leaders in both SD-WAN and OT, and we will continue to focus on our key long-term growth markets of Secure Networking, Consolidated Cybersecurity Fabric, Hybrid Cloud Security, and Operational Technology, which have a combined 2023 TAM of $122 billion.”
The company sees FY adjusted EPS at $1.51, while the Street was at $1.47.
For this quarter, Fortinet expects to report adjusted EPS of $0.36 on revenue of $1.35B, which compares to the consensus for earnings of $0.36 on revenue of $1.38B. Q3 billings are seen at $1.59B, while analysts hoped for $1.68B.
As far as the second quarter performance is concerned, Fortinet reported a profit per share of $0.38, ahead of the consensus of $0.34. Revenue and billings rose 26% and 18% year-over-year to $1.29B and $1.54B, respectively, worse than the expected $1.59B and $1.3B.