Fortinet Stock Price (NASDAQ: FTNT) Showing Big Gains on Strong Earnings

Markets are set for a significant uptick in Fortinet's stock price (NASDAQ: FTNT), up 15% in the pre-market session following a strong second-quarter earnings report.

The cybersecurity firm raised its full-year guidance whilst beating big on EPS, and revenues.

Fortinet, known for its comprehensive suite of cybersecurity solutions, reported second-quarter adjusted earnings per share (EPS) of $0.57. This figure not only smashed the consensus estimate of $0.41 but also pointed to a healthy revenue increase of 10.9% year-on-year, bringing the total to $1.43 billion. This mark beat the consensus of $1.40bn by a healthy margin. The underlying strength of Fortinet’s business model was further highlighted by its service revenue, which saw an impressive 19.8% year-on-year increase to $982.4 million.

The growth in service revenue has been a critical factor for Fortinet, driving its operating margins to record levels. For GAAP, the operating margin hit 30.5%, while non-GAAP operating margin reached an even more notable 35.1%. These margins underscore the operational efficiency and the scalability of Fortinet’s business.

Fortinet’s forward-looking full-year 2024 guidance provided further encouragement to investors and analysts alike. The company projects EPS to be in the range of $2.13 to $2.19, comfortably ahead of the $1.76 consensus. Additionally, revenues are expected to land between $5.8 billion and $5.9 billion, indicating the company’s confidence in its growth trajectory and market position.

Looking forward, Fortinet is well-positioned within the rapidly growing cybersecurity market. As digital transformation continues to spread across industries and the threat landscape evolves, the demand for Fortinet’s solutions is likely to remain robust.