Shares of Fortinet (FTNT -3.57%) rose on Friday after the cybersecurity provider reported its third-quarter results. It beat analyst estimates for both revenue and earnings, and increased its guidance for the full year. The stock was up 11% at 12:10 p.m. EDT today.
Third-quarter revenue was $547.5 million, up 21% year over year and nearly $14 million higher than the average analyst estimate. Product revenue was $197.1 million, up 20% from the prior-year period, while service revenue jumped 21% to $350.4 million.
"Strong revenue growth for Fortinet Security Fabric, cloud and SD-WAN offerings contributed to our 21% year-over-year total revenue growth in the third quarter, which we believe is stronger than the average revenue growth rate in our industry," CEO Ken Xie said in prepared remarks included in the earnings release.
Non-GAAP (adjusted) earnings per share came in at $0.67, up from $0.49 in the prior-year period and $0.11 better than analysts were expecting.
For the fourth quarter, Fortinet expects revenue between $595 million and $610 million, along with a non-GAAP operating margin between 25.5% and 26%.
For the full year, the company boosted its guidance ranges. Revenue is now expected between $2.135 billion and $2.150 billion, up from a previous range of $2.10 billion to $2.12 billion. Non-GAAP operating margin is expected between 24% and 25.5%, up from a previous range of 23% to 23.5%.
Fortinet's strong results and guidance prompted analysts at BMO, Mizuho, and Cowen to tack on a few dollars to their respective price targets. Investors seemed to agree with that sentiment, sending the stock higher on Friday.