Shares of Fortinet (FTNT -0.74%) have gotten crushed today, down by 8% as of 3:10 p.m. EDT, after the company reported second-quarter earnings. The results topped expectations and guidance was rosy, so it's unclear why investors were disappointed.
Revenue in the second quarter was $615.5 million, beating the consensus estimate of $599.2 million in sales. That led to adjusted net income of $135.1 million, or $0.82 per share. Wall Street was modeling for just $0.65 per share in adjusted profits. The cybersecurity technology company reported billings of $711.5 million and free cash flow of $216.1 million.
"With the network edge stretched across the entire digital infrastructure, we believe networking and security will continue to converge," CEO Ken Xie said in a statement. "Recent Secure Access Service Edge, or SASE, market momentum further validates our security-driven networking approach."
Fortinet repurchased $156.1 million in stock during Q2. After the quarter closed, the board of directors boosted the company's buyback authorization by $500 million to $3 billion and extended the program through February 2022. There is just over $1 billion remaining available under the authorization.
In terms of guidance, revenue in the third quarter is expected to be $630 million to $645 million, with billings of $705 million to $730 million. Adjusted earnings per share are forecast at $0.76 to $0.78. Analysts are currently expecting $623.3 million in sales and adjusted EPS of $0.72 in the coming quarter.