We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Unlocking Fortinet (FTNT) International Revenues: Trends, Surprises, and Prospects
Read MoreHide Full Article
Did you analyze how Fortinet (FTNT - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this network security company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While delving into FTNT's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $1.43 billion, showing rise of 11%. We will now explore the breakdown of FTNT's overseas revenue to assess the impact of its international operations.
A Dive into FTNT's International Revenue Trends
Europe Middle East and Africa generated $565.2 million in revenues for the company in the last quarter, constituting 39.4% of the total. This represented a surprise of +3.09% compared to the $548.24 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe Middle East and Africa accounted for $539.4 million (39.9%), and in the year-ago quarter, it contributed $506.9 million (39.2%) to the total revenue.
Asia Pacific and Japan accounted for 19.1% of the company's total revenue during the quarter, translating to $273.8 million. Revenues from this region represented a surprise of -0.3%, with Wall Street analysts collectively expecting $274.62 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific and Japan contributed $256.9 million (19%) and $248.9 million (19.3%) to the total revenue, respectively.
International Market Revenue Projections
It is projected by analysts on Wall Street that Fortinet will post revenues of $1.48 billion for the ongoing fiscal quarter, an increase of 10.7% from the year-ago quarter. The expected contributions from Europe Middle East and Africa and Asia Pacific and Japan to this revenue are 38.6% and 19.9%, translating into $570.55 million and $294.46 million, respectively.
For the full year, the company is projected to achieve a total revenue of $5.84 billion, which signifies a rise of 10.2% from the last year. The share of this revenue from various regions is expected to be: Europe Middle East and Africa at 39% ($2.28 billion) and Asia Pacific and Japan at 19.4% ($1.13 billion).
Key Takeaways
Fortinet's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Image: Bigstock
Unlocking Fortinet (FTNT) International Revenues: Trends, Surprises, and Prospects
Did you analyze how Fortinet (FTNT - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this network security company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While delving into FTNT's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $1.43 billion, showing rise of 11%. We will now explore the breakdown of FTNT's overseas revenue to assess the impact of its international operations.
A Dive into FTNT's International Revenue Trends
Europe Middle East and Africa generated $565.2 million in revenues for the company in the last quarter, constituting 39.4% of the total. This represented a surprise of +3.09% compared to the $548.24 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe Middle East and Africa accounted for $539.4 million (39.9%), and in the year-ago quarter, it contributed $506.9 million (39.2%) to the total revenue.
Asia Pacific and Japan accounted for 19.1% of the company's total revenue during the quarter, translating to $273.8 million. Revenues from this region represented a surprise of -0.3%, with Wall Street analysts collectively expecting $274.62 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific and Japan contributed $256.9 million (19%) and $248.9 million (19.3%) to the total revenue, respectively.
International Market Revenue Projections
It is projected by analysts on Wall Street that Fortinet will post revenues of $1.48 billion for the ongoing fiscal quarter, an increase of 10.7% from the year-ago quarter. The expected contributions from Europe Middle East and Africa and Asia Pacific and Japan to this revenue are 38.6% and 19.9%, translating into $570.55 million and $294.46 million, respectively.For the full year, the company is projected to achieve a total revenue of $5.84 billion, which signifies a rise of 10.2% from the last year. The share of this revenue from various regions is expected to be: Europe Middle East and Africa at 39% ($2.28 billion) and Asia Pacific and Japan at 19.4% ($1.13 billion).
Key Takeaways
Fortinet's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Currently, Fortinet holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Fortinet's Stock Price Movement in Recent Times