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Fri, Feb. 5, 11:01 AM
- A long list of enterprise software and security tech names are off sharply after business intelligence/analytics software upstart Tableau (down 45.3%) reported slower-than-expected license revenue growth and issued below-consensus Q1/2016 guidance.
- Also possibly weighing: LinkedIn (down 39.6%), which derives a large % of its revenue from cloud-based recruiting and sales tools for enterprises, issued weak Q1/2016 guidance.
- Given the magnitude of the drops, margin calls and forced selling by funds could be playing a big role. The Nasdaq is down 2.2%.
- Tableau suggested its growth slowdown has to do with softening IT spend and a need to improve sales productivity, but analysts have raised questions about competition from the likes of Microsoft, Amazon, and Qlik. LinkedIn forecast a growth slowdown for its field sales hiring solutions business, while blaming European/Asian macro pressures. The company also noted its display ad business continues declining amid weak industry growth.
- Major enterprise software decliners include Splunk (SPLK -23.7%), Workday (WDAY -15.1%), Adobe (ADBE -7%), Zendesk (ZEN -15.2%), ServiceNow (NOW -13.6%), NetSuite (N -12.4%), Salesforce (CRM -11.2%), Paycom (PAYC -10.6%), Ellie Mae (ELLI -11.5%), Cornerstone OnDemand (CSOD -7.8%), Veeva (VEEV -7.7%), Ultimate Software (ULTI -9%), Luxoft (LXFT -7.5%), Manhattan Associates (MANH -8.5%), Box (BOX -6.6%), Guidewire (GWRE -13.6%), Demandware (DWRE -9.3%), Hortonworks (HDP -9.7%), and Tableau rival Qlik (QLIK -16.6%). The casualty list includes many cloud software firms, as well as several analytics software plays. Previously covered: New Relic, Atlassian.
- Major decliners among security tech firms: Palo Alto Networks (PANW -12%), FireEye (FEYE -8.9%), Rapid7 (RPD -8.6%), CyberArk (CYBR -8.3%), Proofpoint (PFPT -8%), Imperva (IMPV -8.3%), Fortinet (FTNT -6.9%), and Vasco (VDSI -5.1%). The selloff comes in spite of an FQ3 beat and in-line FQ4 guidance from Symantec, which has been losing share to various upstarts.
Thu, Jan. 28, 5:38 PM
Thu, Jan. 28, 5:06 PM
- With expectations low going into earnings, Fortinet (NASDAQ:FTNT) has surged to $29.00 after hours after posting nearly in-line Q4 results and providing healthy 2016 guidance in its earnings slides (.pdf) - revenue of $1.25B-$1.26B (+24% Y/Y) and EPS of $0.67-$0.69 vs. a consensus of $1.24B and $0.68.
- Q1 guidance is light: Revenue of $270M-$275M and EPS of $0.08-$0.09 vs. a consensus of $277.6M and $0.13.
- Fortinet has also announced a new $200M buyback - it's good for repurchasing 4% of shares at current levels. The buyback replaces a prior authorization through which $137.5M was spent to buy back 5.5M shares. $60M was spent on buybacks in Q4.
- Billings: Q4 billings totaled $380.9M, up 35% Y/Y, above revenue of $296.5M, and topping guidance of $364M-$369M. Q1 billings guidance is at $315M-$322M (+25% Y/Y), and full-year guidance at $1.505B-$1.52B (+23%). Fortinet has a history of issuing conservative billings guidance. Billings growth led the deferred revenue balance to rise 42% Y/Y in Q4 to $791.3M.
- Fortinet's Q4 results, earnings release
Thu, Jan. 28, 4:16 PM
Wed, Jan. 27, 5:35 PM| Wed, Jan. 27, 5:35 PM | 9 Comments
Tue, Jan. 26, 8:38 AM
- Stating Q4 channel checks point to a slowdown in momentum, Deutsche's Imtiaz Koujalgi has downgraded Fortinet (NASDAQ:FTNT) to Hold ahead of the unified threat management/next-gen firewall appliance vendor's Thursday afternoon Q4 report. His target has been cut by $15 to $34.
- FTNT -2.1% premarket to $26.65. Piper downgraded Fortinet last week, while citing a soft Q4 reseller survey, a shift in IT spending priorities, growing price pressure, and tough comps.
- Shares now go for just 3.9x the midpoint of a 2015 billings guidance range of $1.215B-$1.22B.
Wed, Jan. 20, 9:13 AM
Wed, Jan. 20, 8:40 AM
- Piper's Andrew Nowinski has downgraded Fortinet (NASDAQ:FTNT) to Neutral ahead of its Jan. 28 Q4 report, and cut his target by $20 to $30.
- Nowinski: "Our downgrade is based on a number of factors, including waning demand trends highlighted in our 4Q15 reseller survey, a shift in spending priorities noted in our 2016 CIO survey, increasing pricing pressure and difficult comparisons. Despite trading at a modest discount to peers, we believe Fortinet could struggle to exceed expectations for the aforementioned reasons and therefore we believe the current valuation appropriately balances the risk/reward."
- Shares have dropped to $24.56 premarket on a morning Nasdaq futures are down 1.9%. They also fell hard yesterday.
Tue, Jan. 19, 4:20 PM
- Though the Nasdaq fell just 0.3%, a healthy number of beaten-up tech names tumbled to new 52-week lows today, often on strong volume. Margin calls, panic selling, and fund liquidations are on the list of potential culprits.
- The casualty list once more includes action camera vendor GoPro (GPRO -7.8%) and video processor supplier Ambarella (AMBA -6.3%). It also features threat-prevention tech provider FireEye (FEYE -6.8%), virtualization software giant VMware (VMW -6%), and driver-assistance system provider Mobileye (MBLY -5.4%).
- The list also features unified threat management appliance vendor Fortinet (FTNT -6.4%), microcontroller maker Cypress Semi (CY -6.1%), card-reader/payments provider Square (SQ -7.8%), security software/services provider Rapid7 (RPD -9.7%), and enterprise cloud-storage/file-sharing service provider Box (BOX -7.7%).
- EMC (EMC -2.6%), still set to be acquired by Dell (with part of the payout consisting of a VMware tracking stock), felt the effects of VMware's selloff. Mobileye saw Citron Research take another shot via Twitter. "$MBLY CItron not making the $GPRO mistake, stock is still overvalued as a teenager. At $10 it is still an EXPENSIVE $1.8 bil company."
- Square, meanwhile, is now less than 6% above its $9 IPO price, and 15% below a post-IPO opening trade of $11.20. Rapid7 is 11% below its $16 IPO price, and 47% below an opening trade of $26.75.
- Also falling hard today: Solar stocks, Twitter
Dec. 30, 2015, 6:22 PM
- "On the heels of another strong year for cybersecurity players, our recent field checks heading into 2016 suggest 'robust' deal momentum as enterprises and governments across the board upgrade to next-generation security platforms/software," says FBR's Dan Ives, reiterating his bullish stance on security tech upstarts.
- Ives: "Based on our conversations with channel partners/customers over the last few weeks, closure rates look to be trending higher year over year, with seven-figure deals markedly up in the pipeline. This speaks to the massive firewall refresh that is underway, with hot areas of security (next-generation firewall, e-mail security, mobile/cloud) as the main beneficiaries."
- He expects next-gen firewall leader Palo Alto Networks (NYSE:PANW) to be a major beneficiary. Others expected to benefit include firewall/security software vendor Check Point (NASDAQ:CHKP), privileged account security software leader CyberArk (NASDAQ:CYBR), unified threat appliance leader Fortinet (NASDAQ:FTNT), e-mail/compliance security software firm Proofpoint (NASDAQ:PFPT), and Web app firewall and data security software firm Imperva (NYSE:IMPV).
- Ives is less bullish on malware and endpoint-protection hardware and software provider FireEye (NASDAQ:FEYE), citing execution and product-related headwinds. His note comes three weeks after Citi reported a CIO survey pointed to strong enterprise security spend. FireEye (upgraded), Palo Alto, Splunk, and Imperva were favorably mentioned.
- ETF: HACK
Dec. 14, 2015, 9:22 AM
- Believing further downside is limited and that current levels fully reflect his concerns, Cowen's Gregg Moskowitz has upgraded Fortinet (NASDAQ:FTNT) to Market Perform 5 months after downgrading to Underperform.
- The unified threat management (UTM) appliance leader is down 26% since Moskowitz's downgrade, and 39% from an August peak of $50.31. Shares fell hard in October after Fortinet's Q4 guidance disappointed, and now trade for 4.3x the midpoint of the company's 2015 billings guidance range.
- Shares haven't yet moved premarket.
- Update (10:11AM ET): Fortinet is up 1%.
Nov. 5, 2015, 12:47 PM
- Fortinet (FTNT -4.2%), Barracuda (CUDA -3.9%), Vasco (VDSI -1.9%), Proofpoint (PFPT -4.6%), and KEYW (KEYW -6.3%) have joined the ranks of enterprise security tech firms selling off in the wake of FireEye's Q3 revenue/billings miss, soft Q4 sales guidance, and full-year billings guidance cut.
- Other decliners include Palo Alto Networks, CyberArk, and Rapid7. FireEye itself is down 23%.
- Also: PC/mobile security software firm AVG is down 17.7% after missing Q3 estimates and providing light Q4 guidance. Symantec is up slightly following an FQ2 EPS beat.
- The PureFunds ISE Cyber Security ETF (HACK -3.1%) has fallen below $27. CyberArk reports after the bell.
- Update: FBR's Daniel Ives is defending the group. "Importantly, we note that nearly every major cybersecurity player (Check Point, Imperva, Proofpoint, Palo Alto, Fortinet) recently has delivered strong results across the board with a healthy outlook ... We continue to strongly believe that FireEye's issues are much more company-specific as DeWalt & Co. are dealing with a plethora of execution/product headaches in the field, which are major overhangs on the FireEye story heading into 2016. We continue to see white-hot cybersecurity spending, which we view as a 30%+ growth area in a 2%–3% overall IT landscape as the threat landscape escalates. We would be strong buyers of the cybersecurity basket, with PANW, PFPT, and CHKP front and center."
Oct. 23, 2015, 9:14 AM
Oct. 22, 2015, 5:56 PM
- Though Fortinet (NASDAQ:FTNT) beat Q3 estimates, it has guided in its earnings slides (.pdf) for Q4 revenue of $293M-$298M (+32% Y/Y at the midpoint) and EPS of $0.18-$0.19 vs. a consensus of $295.4M and $0.21. Expectations were high following July's strong results/guidance.
- Q3 billings totaled totaled $299.6M, +41% Y/Y, above revenue of $260.1M, and above guidance of $285M-$295M. Full-year billings guidance has been slightly upped to $1.215B-$1.22B (+36% at the midpoint) from $1.2B-$1.21B. At the midpoint, Q4 billings guidance of $364M-$369M implies a slowdown in growth to 30%.
- Billings growth led Q3 free cash flow to total $51.7M (well above net income of $24.1M), and the deferred revenue balance to rise 41% Y/Y to $706.9M.
- Fortinet has fallen to $37.95 after hours. Rival Palo Alto Networks (NYSE:PANW), which is also dealing with high expectations, is down 3.3%. FireEye (NASDAQ:FEYE) is down 2%, and CyberArk (NASDAQ:CYBR) down 1.8%.
- Fortinet's Q3 results, PR
Oct. 22, 2015, 4:20 PM
- Fortinet (NASDAQ:FTNT): Q3 EPS of $0.14 beats by $0.02.
- Revenue of $260.07M (+34.5% Y/Y) beats by $1.27M.
- Shares -19.24%.
Oct. 21, 2015, 5:35 PM
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Fortinet Inc is provider of network security solutions that are designed to address the fundamental problems of an increasingly bandwidth-intensive network environment and a more sophisticated information technology threat landscape.
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