Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Fortinet
So what: Revenue improved 32% to $93.6 million. GAAP per-share earnings came in at $0.20. Analysts were expecting $86.7 million and $0.14, respectively. Billings -- a measure of revenue recognized plus the quarterly change in deferred revenue -- rose 35% in Q4.
Now what: Fortinet is in a good business: securing networks. Its customer list includes Level 3 Networks
Is that enough to make the stock appealing at these levels? That's tougher to say. Fortinet trades for more than 60 times projected earnings, or almost four times the long-term growth rate analysts expect. At that level, the stock could take a beating if Fortinet were to fail to throttle expectations in future quarters.
Interested in more info on Fortinet? Add it to your watchlist.