Fortinet Sets Sights on Strong Q3 Earnings with Analysts Optimistic
Fortinet, Inc. (FTNT), located in Sunnyvale, California, provides network security appliances and unified threat management solutions tailored for enterprises, service providers, and government agencies. With a market cap of $61.4 billion, Fortinet operates globally, serving customers across North America, Latin America, EMEA, and the Asia-Pacific regions. The company is set to reveal its Q3 earnings after the market closes on Thursday, November 7.
Analysts Anticipate Significant Earnings Growth
Analysts predict Fortinet will report a profit of $0.43 per share for Q3, reflecting a 22.9% increase from $0.35 per share during the same quarter last year. Notably, Fortinet has consistently exceeded Wall Street’s EPS estimates, surpassing projections by an impressive 51.5% in the last reporting quarter.
Future Earnings Projections Look Promising
Looking ahead to fiscal 2024, analysts forecast that Fortinet will achieve an EPS of $1.74, representing an 18.4% increase from $1.47 in fiscal year 2023. For fiscal 2025, the expected EPS is projected to grow by 5.8% to $1.84.
FTNT Stock Performance vs. Market Trends
Over the past year, FTNT stock has soared 43.3%, outpacing the S&P 500 Index’s gains of 37.5% and the Technology Select Sector SPDR Fund’s (XLK) returns of 39.2% during the same period.
Market Sentiment and Stock Ratings
On October 21, Fortinet shares climbed over 1% after Morgan Stanley (MS) designated the stock a top pick with an “Overweight” rating and set a price target of $105. However, the stock experienced a setback of more than 2% on October 17 after Mizuho Securities downgraded it to “Underperform” from “Neutral,” with a price target of $68.
The overall consensus on Fortinet’s stock remains moderately optimistic. Out of 37 analysts surveilling the stock, 12 recommend a “Strong Buy,” one suggests a “Moderate Buy,” 23 analysts favor a “Hold,” and one analyst rates it as a “Strong Sell.”
Price Targets and Growth Potential
Currently, FTNT trades above its average price target of $76.22, but the highest target of $105 suggests room for growth, indicating a potential increase of 30.6% from current price levels.
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On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are provided solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
