The bottom-line result exceeded the Fiscal.ai-compiled consensus estimates of $0.59, and the revenue was roughly aligned with the $1.626-billion average analysts’ estimate.
Fortinet stock fell 19.60% in Thursday’s early premarket session after the Sunnyvale, California-based cybersecurity company’s slight downward revision to its full-year revenue guidance did not go down well with investors.
If the premarket losses are sustained in Thursday’s session, the stock is on track to record its worst day in two years, according to Koyfin data.
Retail traders, however, kept faith. On Stocktwits, retail sentiment toward Fortinet stock flipped to ‘extremely bullish’ (89/100) by early Thursday from ‘bearish’ a day ago. The message volume increased to ‘extremely high’ levels as retail chatted about the quarterly print.
The 24-hour message volume leading up to late Wednesday climbed 2,340%.
Fortinet reported adjusted earnings per share (EPS) of $0.64 for the second quarter of the fiscal year 2025, up from $0.57 in the year-ago period.
Quarterly revenue climbed 14% year-over-year to $1.63 billion, and billings grew 15% to $1.78 billion.
The bottom-line result exceeded the Fiscal.ai-compiled consensus estimates of $0.59, and the revenue was roughly aligned with the $1.626-billion average analysts’ estimate.
Founder and CEO Ken Xie said, “Our strong second quarter performance and consistent track record of growth are a direct result of our continued innovation and customer-first strategy, enabling us to beat our billings guidance for the quarter and raise our full-year billings outlook.”
Fortinet’s third-quarter guidance is as follows:
- Adj. EPS: $0.62-$0.64 Vs. $0.62 consensus
- Revenue: $1.670 billion- $1.730 billion Vs. $1.713 billion consensus
The company adjusted its full-year revenue guidance slightly down to a range of $6.675 billion to $6.825 billion, from a range of $6.650 billion to $6.850 billion. However, it raised its full-year adjusted EPS guidance to $2.47-$2.53 from $2.43-$2.49.
Analysts, on average, expect the metrics to come in at $2.49 and $6.76 billion, respectively.
The company also upped the midpoint of the billings guidance for the year by $100 million.
Fortinet stock has gained merely 2.2% for the year.
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