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Fortinet (FTNT) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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Fortinet (FTNT - Free Report) reported $1.42 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 10.3%. EPS of $0.51 for the same period compares to $0.44 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.41 billion, representing a surprise of +0.33%. The company delivered an EPS surprise of +18.60%, with the consensus EPS estimate being $0.43.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Fortinet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total billings (Non-GAAP): $1.86 billion versus $1.64 billion estimated by 11 analysts on average.
  • Total deferred revenue: $5.74 billion versus $5.50 billion estimated by seven analysts on average.
  • Revenue- Europe Middle East and Africa: $575.60 million versus the two-analyst average estimate of $547.25 million. The reported number represents a year-over-year change of +12.8%.
  • Geographic revenues- Total Americas: $569.10 million compared to the $570.35 million average estimate based on two analysts.
  • Revenue- Asia Pacific and Japan: $270.40 million versus the two-analyst average estimate of $290.21 million. The reported number represents a year-over-year change of +7.4%.
  • Revenue- Total Product: $488.10 million versus the 13-analyst average estimate of $496.29 million. The reported number represents a year-over-year change of -9.6%.
  • Revenue- Services: $927 million versus $913.21 million estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +24.8% change.
  • Gross profit- Product Non GAAP: $293.40 million compared to the $289.94 million average estimate based on 10 analysts.
  • Gross profit- Service Non GAAP: $816.80 million compared to the $785.27 million average estimate based on 10 analysts.
  • Gross profit- Product: $290.90 million compared to the $296.69 million average estimate based on three analysts.
  • Gross profit- Services: $808.30 million versus the three-analyst average estimate of $767.97 million.
View all Key Company Metrics for Fortinet here>>>

Shares of Fortinet have returned +7.9% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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