Fortinet (FTNT) is a company that provides network security appliances and Unified Threat Management network security solutions to enterprises, service providers and government entities around the world. Its solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking, antivirus, intrusion prevention, Web filtering, antispam and wide area network acceleration. Fortinet is headquartered in Sunnyvale, CA.

Strong Q4 Results

Last month, Fortinet reported better-than-expected results for its fourth quarter.

Non-GAAP earnings of 59 cents surged 84.4% year-over-year, while revenues of $507 million grew 20% from the prior-year period.

Product revenue was $200.8 million, up 23.9% year-over-year, and service revenue jumped 20.3% year-over-year to $306.2 million.

Total billings increased 22% to almost $649.2 million.

In the earnings release, CEO Keith Jensen said that “[Fortinet is] well-positioned to achieve another year of better than industry growth in 2019, driven by business momentum and strong customer demand for our broad, integrated, and automated security solutions across their entire network infrastructure.”

Jensen also commented on how certain global developments thankfully bypassed the company in Q4. In the earnings call, he said “As our strong revenue growth illustrates, the partial U.S. federal government shutdown as well as concerns raised by Brexit and a slowing Chinese economy had no noticeable impact on our fourth-quarter performance.”

FTNT is On the Rise

Fortinet, Inc. Price and Consensus

Fortinet, Inc. Price and Consensus | Fortinet, Inc. Quote

Year-to-date, shares of Fortinet are up almost 18%. And in the past year, the stock has gained around 63%.

Estimates have been rising lately too, pushing the stocks towards a Zacks Rank #1 (Strong Buy).

For the current fiscal year, the cybersecurity firm’s earnings are expected to grow over 11% year-over-year. Three analysts have revised their estimates upwards in the past 60 days, and the Zacks Consensus Estimate has moved 10 cents higher from $1.15 to $1.25 during the same time frame.

2020 looks pretty strong as well, and earnings are expected to grow around 16.7%; next year’s consensus estimate sits at $1.46 per share, with one upward revision in the last 60 days.

Looking Ahead

Even though Fortinet’s revenue growth is projected to slow this year compared to last, its guidance still calls for a nice double-digit increase to more than $2 billion. For Q1, revenue is expected to fall between $465 million and $475 million, up 17.8% at the midpoint.

Billings should hit between $515 million and $535 million for the quarter, while non-GAAP earnings are expected between $0.37 and $0.39 per share.

The cybersecurity market could see annual growth of over 10% through 2023, and Fortinet is certainly gearing up for the growth opportunities that lie ahead. If you’re an investor looking for a cybersecurity stock to add to your portfolio, make sure to keep FTNT on your shortlist.

Today’s Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fortinet, Inc. (FTNT): Free Stock Analysis Report
To read this article on click here.