Is Today's Selloff In Fortinet A Buying Opportunity?
Alpha Gen Capital
Alpha Gen Capital
Fri, Oct. 21, 1:50 PM
- See: Internet attack takes many sites offline for hours
- Up today – FireEye (FEYE +1.9%), Palo Alto Networks (PANW +0.6%), Fortinet (FTNT +1.5%), Cyberark Software (CYBR +3.9%), Check Point Software Technologies (CHKP +0.8%), Proofpoint (PFPT +10.5%) [see earnings]
- Despite these gains, on the last-month term FireEye's lower by 9%, Palo Alto Networks' unmoved, Fortinet's down 11%, Cyberark Software's down 6%, Check Point Software Technologies' up 2% and Proofpoint's up 1.7%. Names down today in the space include Imperva (IMPV -2.6%), Symantec (SYMC -0.3%) and Barracuda Networks (CUDA), respectively lower by 12%, 4% and 1% on the month.
- CDN providers – Akamai Technologies (AKAM +1.5%), Limelight Networks (LLNW -0.5%), Level 3 Communications (LVLT -0.6%)
- Related – (NYSEARCA:HACK)
Wed, Oct. 12, 12:43 PM
Wed, Oct. 12, 10:16 AM
- A Buy rating, however, is retained.
- Analyst Gabriela Borges cites Fortinet's (FTNT -12.6%) Q3 guidance reduction, though notes positioning, valuation and other possibilities (capital allocation, restructuring, M&A) remain positives.
- Price target lowered from $43 to $36 (current price $29.61).
- Additionally, Citi's Walter Pritchard maintains Fortinet at Neutral while lowering his price target to $31, from $35 previously, following the pre-announcement.
Wed, Oct. 12, 9:15 AM
Tue, Oct. 11, 5:35 PM
Tue, Oct. 11, 4:35 PM
- Fortinet (NASDAQ:FTNT) is expecting total billings of $343M-$348M (vs. $372M-$376M previously), total revenue of $311M-$316M (vs. $319M-$324M previously) and net income per share of $0.15-$0.16 (vs. $0.17-$0.18 previously).
- Authorization of $100M increase to existing share repurchase program disclosed.
- Founder, chairman and CEO Ken Xie: "Our third quarter results were primarily impacted by the lengthening of deal cycles as enterprises are becoming more strategic with their purchasing decisions and buying with less urgency than last year. We also encountered sales execution challenges in the North America resulting from the newness of our sales organization, as well as macro issues in Latin America and the U.K. Though we are disappointed with our third quarter performance, we continue to feel good about our competitive-differentiating and market-leading security fabric. We remain confident in the underlying strength of our business and long-term growth opportunity, and committed to delivering returns to our shareholders."
- Fortinet will report finalized Q3 results on October 27.
- Conference call
Thu, Sep. 22, 2:59 PM
- Yahoo has confirmed a breach affecting at least 500M of its users and SecureWorks (SCWX +6.9%) FireEye (FEYE +5.1%), Barracuda Networks (CUDA +2.9%), Palo Alto Networks (PANW +1.8%), Fortinet (FTNT +1.4%), Imperva (IMPV +1.2%), CyberArk Software (CYBR +1%) and others are benefitting because of it.
- The impact of the development on Yahoo has so far been minimal, with shares presently trading up 0.6% on the day.
Thu, Jul. 28, 5:37 PM
Thu, Jul. 28, 4:18 PM
Wed, Jul. 27, 5:35 PM
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Tue, Jun. 7, 12:03 PM
- Fortinet (FTNT) is buying AccelOps, a provider of integrated network security, performance, and availability monitoring software and security analytics tools, for an undisclosed sum.
- AccelOps claims it provides the first solution to simultaneously address both security operations centers (SOCs) and network operations centers (NOCs), and to correlate security and network data into a common view. The company provides both on-premise and cloud-based versions of its software.
- Fortinet argues the purchase will give customers "greater visibility across both Fortinet and multi-vendor security solutions." The purchase strengthens Fortinet's recently-unveiled Security Fabric strategy, through which the company is looking to feed threat intelligence from both Fortinet and non-Fortinet hardware and software into a common security policy engine.
- Security correlation data and analytics produced by AccelOps' software will feed into Fortinet's Security Fabric. In addition, AccelOps will help power a new subscription service that will "provide customers with automated security and performance audits of their specific security infrastructure."
Thu, May 26, 5:46 PM
- Several security tech names are selling off after next-gen firewall leader and cybersecurity poster child Palo Alto Networks (PANW - down 9.4%) offered in-line guidance (below consensus at the midpoints) to go with an FQ3 sales beat and in-line EPS, disappointing investors accustomed to seeing Palo Alto provide above-consensus sales guidance with its results.
- Palo Alto's billings rose a solid 61% Y/Y in FQ3, nearly on par with FQ2's 62% growth and outpacing revenue growth of 48%. Product revenue rose 33%, and services revenue (boosted by subscription offerings such as WildFire) 63%. EPS was pressured by a 50% Y/Y increase in GAAP operating expenses to $309.5M.
- FireEye (NASDAQ:FEYE) is down 2% after hours. CyberArk (NASDAQ:CYBR) is down 2.4%. Imperva (NYSE:IMPV) is down 1.7%. Fortinet (NASDAQ:FTNT) is down 1.5%.
- ETF: HACK
Wed, Apr. 27, 9:11 AM
Tue, Apr. 26, 5:40 PM
Tue, Apr. 26, 4:44 PM
- Fortinet (NASDAQ:FTNT) has soared 8.9% in late trading following a Q1 earnings report featuring solid beats and strong billings.
- The company swung to a GAAP loss, though income grew nearly 50% Y/Y on a non-GAAP basis. Non-GAAP operating income was $30.1M (operating margin 11%).
- Revenues were up nearly 34% overall with service revenues a bright spot. Total billings grew 30% to $330.5M, and deferred revenue of $837.2M was up from last quarter's $791.3M.
- Revenue breakout: Product, $124.6M (up 28%); Service, $160M (up 39%).
- Gross profit on product was $75.2M (up 34%); on service, $131.6M (up 41.3%).
- Conference call link
Tue, Apr. 26, 4:16 PM
- Fortinet (NASDAQ:FTNT): Q1 EPS of $0.12 beats by $0.03.
- Revenue of $284.6M (+33.7% Y/Y) beats by $11.14M.
- Shares +4%.