Shares of Fortinet (FTNT 0.60%) rose on Friday after the cybersecurity provider reported its second-quarter results. Fortinet beat analyst estimates for both revenue and earnings, and it raised its guidance for the full year. The stock was up about 11.4% at 10:50 a.m. EST.
Fortinet reported second-quarter revenue of $521.7 million, up 18% year over year and about $10.3 million above the average analyst estimate. Product revenue was $189.9 million, up 14%, and service revenue was $331.8 million, up 21%. Billings were up 21% to $622.4 million, driven by Fortinet Security Fabric, SD-WAN, and cloud products.
Non-GAAP (adjusted) earnings per share came in at $0.58, up from $0.41 in the prior-year period and $0.08 better than analysts were expecting. GAAP EPS was $0.42, up from $0.28 in the second quarter of 2018.
"We expect 2019 to be another year of better-than-industry growth, driven by our advanced security processing technology, new products and services offerings, and new market opportunities," said Fortinet CEO Ken Xie in prepared remarks included in the earnings release.
For the third quarter, Fortinet expects revenue between $525 million and $540 million, along with non-GAAP EPS between $0.55 and $0.57. For the full year, the company expects revenue between $2.10 billion and $2.12 billion, and non-GAAP EPS between $2.23 and $2.26. That full-year guidance is up a bit from the company's previous guidance.
With Fortinet beating analyst estimates and raising its guidance, there were plenty of reasons for investors to bid up the stock.