Cybersecurity stocks were trading weaker on Friday after the sector’s name Fortinet (FTNT:US) offered a fourth-quarter forecast that fell short of the average analyst estimate.
Additionally, Fortinet lowered its full-year revenue guidance, which also missed the consensus analyst estimate.
For the full year, Fortinet expects to achieve a range of $5.27 billion to $5.33 billion, falling short of the estimate of $5.4 billion. The company anticipates earnings per share between $1.54 and $1.56, exceeding the estimate of $1.51.
Fortinet's billings forecast for the year ranges from $6.10 billion to $6.24 billion, again falling short of the estimated $6.54 billion.
For Q4, Fortinet expects earnings per share in the range of $0.42 to $0.44, in line with expectations. The company forecasts revenue between $1.38 billion to $1.44 billion, falling short of the estimated $1.5 billion.
More strikingly, Fortinet's billings for the fourth quarter are expected to range from $1.56 billion to $1.70 billion, significantly lower than the estimated $1.91 billion.
As far as Q3 results are concerned, Fortinet reported adjusted earnings per share of $0.41, beating the estimated $0.37. The company's billings for the third quarter reached $1.49 billion, showing a 5.7% year-over-year increase but falling short of the estimated $1.59 billion.
Fortinet's revenue for the third quarter amounted to $1.33 billion, marking a 16% YoY increase but falling slightly short of the estimated $1.35 billion.
In the earnings release, FTNT said the “Secure Networking market is experiencing slower growth as product demand returns to normal levels following two years of elevated growth.”
Rep. Michael McCaul disclosed in September he spent over $100,000 buying FTNT shares while the stock was trading around the $60 handle. Following Friday’s selloff, Fortinet shares were seen trading around the $45 mark.