Wall Street analysts forecast that Fortinet (FTNT) will report quarterly earnings of $0.75 per share in its upcoming release, pointing to a year-over-year increase of 17.2%. It is anticipated that revenues will amount to $1.88 billion, exhibiting an increase of 15.4% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Fortinet metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Revenue- Services' reaching $1.24 billion. The estimate suggests a change of +10.9% year over year.
Analysts predict that the 'Revenue- Product' will reach $633.38 million. The estimate suggests a change of +24.5% year over year.
The average prediction of analysts places 'Revenue- Services- Security subscription' at $723.10 million. The estimate points to a change of +12.2% from the year-ago quarter.
The consensus among analysts is that 'Revenue- Services- Technical support and other' will reach $526.55 million. The estimate points to a change of +10.5% from the year-ago quarter.
Based on the collective assessment of analysts, 'Total billings (Non-GAAP)' should arrive at $2.14 billion. The estimate compares to the year-ago value of $1.78 billion.
The consensus estimate for 'Gross profit- Product Non-GAAP' stands at $432.99 million. Compared to the present estimate, the company reported $345.20 million in the same quarter last year.
The collective assessment of analysts points to an estimated 'Gross profit- Service Non-GAAP' of $1.07 billion. Compared to the present estimate, the company reported $984.70 million in the same quarter last year.
The combined assessment of analysts suggests that 'Gross profit- Product' will likely reach $412.00 million. Compared to the present estimate, the company reported $343.00 million in the same quarter last year.
It is projected by analysts that the 'Gross profit- Services' will reach $1.07 billion. Compared to the current estimate, the company reported $972.10 million in the same quarter of the previous year.
View all Key Company Metrics for Fortinet here>>>Over the past month, Fortinet shares have recorded returns of +1.1% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #1 (Strong Buy), FTNT will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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This article originally published on Zacks Investment Research (zacks.com).