Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Can Fortinet Deliver A One-Two Punch Of Growth With Higher Margins?

It's probably true of all industries to some extent, but the enterprise/network security business seems to be one where there's always some nagging detail for the companies. Check Point (NASDAQ:CHKP) has fantastic margins, but hasn't always been quick to innovate and seems willing to cede margin to maintain share. Palo Alto (NYSE:PANW) has a great sales effort, but sometimes seems to overstate its own capabilities. For Fortinet (NASDAQ:FTNT), the challenge is pairing good revenue growth and share gains with strong margins, and judging by management's guidance that challenge will continue on at least another quarter.

Good Results On Balance

Fortinet delivered a solid quarter, with very good growth in high-end systems and large deals....

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