Fortinet, Inc.
FTNT
is slated to report first-quarter 2021 results on Apr 29.
For the quarter, the company estimates revenues of $670-$685 million. The Zacks Consensus Estimate for revenues is pegged at $678.91 million, calling for year-over-year growth of 17.68%.
Non-GAAP earnings per share are projected at 70-75 cents. The Zacks Consensus Estimate is pegged at 74 cents per share, indicating a year-on-year increase of 23.33%.
The company’s earnings surpassed the consensus mark in the trailing four quarters, the average surprise being 17.35%.
Let’s see how things have shaped up for the upcoming announcement.
Key Factors
Fortinet’s first-quarter performance is expected to have benefited from a robust momentum in FortiGate virtual machines, which is driving its private and public cloud billings. Management expects billings in a band of $765-$780 million for the first quarter.
Moreover, higher inventory balances and extended payment plans are expected to have been key positives during the quarter under review.
The rapid adoption of FortiGate-based secure SD-WAN offerings is likely to have aided the company’s Product segment. The Zacks Consensus Estimate for Product revenues in the March-end quarter is pinned at $215 million, suggesting 12% year-over-year growth.
Also, FortiGuard security subscriptions and FortiCare technical support services are likely to have maintained solid traction, supporting the company’s Services segment. The Zacks Consensus Estimate for quarterly Services revenues is pinned at $464 million, calling for 20.5% year-over-year growth.
Besides, the company is expected to have benefited from its IoT offerings with the Forti- ASIC SPU technology, which provides a cost and performance advantage over its competitors.
However, capital expenditures are expected to be sequentially higher. Management had estimated capital expenditures for the first quarter between $50 million and $60 million, in the company’s last earnings call.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Fortinet this season. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our
Earnings ESP Filter.
Fortinet has an Earnings ESP of 0.00% and a Zacks Rank of 3, at present.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post earnings beats in their upcoming releases:
NVIDIA Corporation
NVDA
has an Earnings ESP of +2.51% and a Zacks Rank of 2, currently. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Texas Instruments Incorporated
TXN
has an Earnings ESP of +4.25% and currently, a Zacks Rank of 2.
Alphabet Inc.
GOOGL
has an Earnings ESP of +3.71% and a Zacks Rank #3, at present.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report