Fortinet (FTNT, $53.39) tops Q2 earnings expectations
Fortinet Inc. posted second-quarter 2022 non-GAAP earnings of 24 cents per share, which surpassed the Zacks Consensus Estimate of 22 cents. The figure is also higher than the year-ago quarter’s 19 cents per share.
Total revenues surged +28.6% from the year-ago quarter to $1.03 billion, in line with the Zacks Consensus estimate. Growth was bolstered by solid demand for FortiGate technology (which includes a security processing unit, an integrated Security Fabric platform and hybrid multi-cloud offerings).
While Fortinet’s Product revenues climbed +34.3% year over year to $400.7 million, Services revenues rose +25.2% to $629.4 million.
Billings rose +35.7% year-over-year to $1.30 billion, while bookings surged + 42.1% year over year to $1.38 billion.
Geographically, the company generated the highest revenue growth in the APAC region (+ 42.3% ) followed by the EMEA (+28% )and America ( 22.7%).
Aroon Indicator for FTNT shows an upward move is likely
FTNT's Aroon Indicator triggered a bullish signal on November 12, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 309 similar instances where the Aroon Indicator showed a similar pattern. In of the 309 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 29, 2024. You may want to consider a long position or call options on FTNT as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
FTNT moved above its 50-day moving average on November 06, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FTNT advanced for three days, in of 358 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for FTNT moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for FTNT turned negative on December 09, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FTNT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
FTNT broke above its upper Bollinger Band on December 04, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. FTNT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: FTNT's P/B Ratio (555.556) is slightly higher than the industry average of (30.949). P/E Ratio (46.445) is within average values for comparable stocks, (160.291). Projected Growth (PEG Ratio) (1.825) is also within normal values, averaging (2.755). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (10.070) is also within normal values, averaging (57.899).
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a provider of threat management and network security solutions
Industry PackagedSoftware