FTNT Earnings Prediction
The chart below shows how FTNT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FTNT sees a -1.01% change in stock price 10 days leading up to the earnings, and a +0.32% change 10 days following the report. On the earnings day itself, the stock moves by +1.07%. This data can give you a slight idea of what to expect for the next quarter's release.
FTNT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.66B
17.31%
10.08%
Gross Margin
81.06%
4.35%
-1.78%
Operating Margin
34.51%
27.11%
10.79%
Net Margin
31.70%
44.29%
-11.45%
EPS
0.68
70.00%
-2.86%
No Data Available
FTNT Earnings Analysis
Fortinet Inc Corporation (FTNT.O) Earnings Conference Call
Positive
Record Operating Margin Achievement: Fortinet reported a record operating margin of 39.2%, exceeding the high end of guidance by 520 basis points, reflecting strong gross margin and top-line overperformance.
Q4 Revenue Growth Surge: Total revenue for Q4 2024 grew 17% year-over-year to $1.66 billion, driven by product revenue growth of 18%, marking the highest growth rate in six quarters.
Record Customer Acquisition: The company added a record 6,900 new logos in Q4, showcasing strong customer acquisition and alignment with channel partners.
Strong ARR Growth: Annual recurring revenue (ARR) for SecOps grew 32% and Unified SaaS grew 28%, contributing to a combined total of over $1.5 billion, indicating robust demand for these services.
Record Free Cash Flow: Free cash flow reached a record $1.9 billion for the year, representing a margin of 32%, highlighting strong cash generation capabilities.
Negative
Billings Growth Slowdown: Total billings grew only 7% to $2 billion, indicating a slowdown compared to previous growth rates.
Contract Term Decline: Average contract term decreased to 29 months, down one month year-over-year, suggesting potential customer hesitance in long-term commitments.
Operating Margin Decline: Operating margin decreased by 190 basis points due to acquisitions, indicating a negative impact on profitability expectations.
Operating Margin Decline: The expected decrease in operating margin by around 50 basis points for the full year due to acquisitions reflects ongoing cost pressures.
Cash Tax Reduction Impact: Cash taxes were $156 million, down $186 million, indicating a significant reduction in cash flow available for reinvestment or shareholder returns.
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FTNT Earning Call Sentiment
Fortinet, Inc. (NASDAQ:FTNT) Q4 2024 Earnings Call Transcript
FTNT.O
0.89%Positive
The earnings report shows strong financial performance with significant revenue and margin growth, along with a robust EPS increase. Despite some concerns over tariff impacts and cautious billings guidance, the overall sentiment is bolstered by strong cash flow, a large buyback authorization, and strategic advancements in product offerings. The Q&A section reveals some uncertainties, but the company's strategic positioning and growth potential in key areas like SaaS and SecOps remain positive. Given these factors, a positive stock price movement is anticipated.
