Fortinet stock sinks after earnings as billings forecast underwhelms

Shares of Fortinet Inc. FTNT, -5.65% were off more than 13% in after-hours trading Wednesday after the cybersecurity company topped expectations with its latest earnings and revenue numbers but delivered a billings forecast for the current period that came up light. The company logged third-quarter net income of $231.6 million, or 29 cents a share, up from $163.1 million, or 19 cents a share, in the year-earlier period. After adjusting for stock-based compensation and certain other items, Fortinet earned 33 cents a share, up from 20 cents a share a year before, while analysts tracked by FactSet had been anticipating 27 cents a share. Revenue rose to $1.15 billion from $867 million, whereas the FactSet consensus was for $1.12 billion. For the fourth quarter, Fortinet executives anticipate $1.275 billion to $1.315 billion in revenue, along with 38 cents to 40 cents in adjusted earnings per share. The FactSet consensus was for $1.274 billion and 35 cents, respectively. Executives also gave a forecast for $1.665 billion to $1.720 billion in billings, while the FactSet consensus was for $1.740 billion. Fortinet’s billings metric reflects other business signed during the quarter that was not recognized as revenue.