Bucking a two-week sell-off heading into its earnings report, Fortinet (FTNT) on Thursday reported first-quarter profit, revenue and billings that topped analyst estimates. FTNT stock wavered even though the cybersecurity firm’s sales outlook also came in above views.
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Reporting after the market close, 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 gave up initial gains and was slightly down in after-hours trading on the stock market today. Analysts have debated how well cybersecurity stocks would hold up if the economy weakens.
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 (PANW), Check Point Software Technologies (CHKP) 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.
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