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 network and data security expert Fortinet
So what: Fortinet's third-quarter results crushed management's timid guidance and Street estimates with ease, including a surprise 37% year-over-year revenue jump. The performance comes on the heels of a very strong Monday session; Fortinet's shares have obliterated the market with a 20% gain this week.
Now what: The revenue gains were pretty evenly divided between new hardware sales and support contracts, which is exactly how Fortinet likes it. Over time, the growing base of installed systems should lead to dramatically higher support revenues in the same razor-and-blades model that makes so much money for robotic surgery veteran Intuitive Surgical
Interested in more info about Fortinet? Click here to add it to My Watchlist.