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Killexams : Fortinet FortiSandbox mock - BingNews https://killexams.com/pass4sure/exam-detail/FortiSandbox Search results Killexams : Fortinet FortiSandbox mock - BingNews https://killexams.com/pass4sure/exam-detail/FortiSandbox https://killexams.com/exam_list/Fortinet Killexams : Top Cybersecurity Stock Fortinet Forecasts Strong Growth for 2023 -- Is the Stock a Buy?

Fortinet (FTNT -1.22%) stock is rocking and rolling again after its fourth-quarter 2022 earnings update. This top cybersecurity pure play not only put the icing on a great couple of years, it also added to shareholder optimism that it can achieve the lofty goals it set for itself at an investor event a few months ago. With shares quickly climbing back toward their all-time highs from nearly a year ago, is Fortinet still a buy?  

Where high-performance networking and cybersecurity meet

Fortinet has been handily beating the overall market for years, and longtime shareholders know the secret sauce is the company's custom hardware. As the company pointed out during its investor presentation in December 2022, its proprietary chip technology (the security processing unit, or SPU) is best-in-breed. It's a big reason Fortinet wins business, as it helps its customers embed security solutions directly into their network infrastructure.

This competitive strength was on financial display in Q4 2022. Management reported total revenue increased 33% year over year to $1.28 billion, including a 43% year-over-year increase in product sales (networking hardware featuring those Fortinet chips) to $540 million. It caps off an epic year of growth. Total 2022 revenue was up 32% to $4.42 billion (including $1.78 billion in product, a 42% increase). This builds on what was also a stellar 2021, when total revenue grew 29%.

Fortinet's profitability was even better in the Q4 report card. Its operating margin rallied in the final months of the year to 27.9%, under generally accepted accounting principles (GAAP), bringing the full-year total to 21.9% -- much of that due to the higher pace of hardware sales (more on that momentarily). Resulting free cash flow also rallied in Q4 to $497 million (a hefty margin of 39%), bringing the full-year free-cash-flow total to $1.45 billion.  

Highly profitable services on the way

On to guidance. Fortinet said to expect first-quarter 2023 revenue to be in the range of $1.18 billion to $1.22 billion, a 26% year-over-year increase at the midpoint of the outlook. And for the full-year 2023 period, revenue is expected to be in the range of $5.37 billion to $5.43 billion, a 22% year-over-year increase. Of the total sales estimate, management said to expect services revenue to be around $3.35 billion, up 27% compared to 2022. This is important news, and a significant development that confirms what savvy investors have been expecting from Fortinet.

You see, the journey doesn't end after Fortinet sells its physical products that get embedded into a customer's network. Once up and running, that customer then turns on recurring software and services that are sold as a package with the security hardware. The result is an ongoing stream of service revenue for Fortinet that can generate highly profitable returns (typically far higher profit than the product sale) for the company for years to come.

It also makes for a very sticky relationship. Many cybersecurity upstart companies (most of which address problems with the modern cloud) are software only. There are often low switching costs associated with those types of services. But a company like Fortinet, with products embedded into the very fabric of a customer's IT infrastructure? That's significantly harder to uproot. 

Additionally, Fortinet has done a great job over the years developing new cloud-based services as an add-on to (or integrated with) its hardware-based offerings. With a large installed base in existence, it gives the company the opportunity to go out and cross-sell more services as their customers need -- further enhancing Fortinet's chance to expand profitably. 

With a big and expanding backlog of business, Fortinet's exact report was fantastic news for this cybersecurity leader. Shares now trade for 32 times 2022 free cash flow, a premium price tag. However, if Fortinet meets its goals for double-digit revenue growth, maintains its high profit margin, and continues to repurchase lots of stock (it repurchased $1.99 billion in 2022) over the next few years, it's certainly not an unreasonable price. I remain a buyer here.

Fri, 10 Feb 2023 10:53:00 -0600 Nicholas Rossolillo en text/html https://www.fool.com/investing/2023/02/10/top-cybersecurity-stock-fortinet-forecasts-strong/
Killexams : Is It Too Late to Buy Fortinet Stock?

Fortinet's (FTNT -1.22%) stock jumped nearly 11% on Feb. 8 after the company posted its fourth-quarter earnings report. The cybersecurity company's revenue rose 33% year over year to $1.28 billion but narrowly missed analysts' estimates by $20 million. However, its adjusted earnings rose 76% to $0.44 per share and topped the consensus forecast by a nickel.

Fortinet also posted strong guidance for 2023. It expects its revenue to rise 24% to 28% year over year in the first quarter and grow 21% to 23% for the full year. Both estimates easily surpassed Wall Street's expectations.

That stable outlook suggests that Fortinet is still well insulated from the macro headwinds, but is it too late to buy its stock after its post-earnings pop? Let's take a fresh look at Fortinet's business and valuations to decide.

A digital padlock on a circuit board.

Image source: Getty Images.

An early mover in next-gen firewalls

Back in 2002, Fortinet launched FortiGate, a next-gen firewall that upgraded traditional firewalls with network device filtering tools. It established an early-mover's advantage in that market and now serves about 615,000 customers globally, including most of the Fortune 500. FortiGate subsequently became the foundation of Fortinet's Security Fabric, which provides end-to-end protection tools for on-premise, cloud-based, and Internet of Things devices through a blend of on-site appliances, software, and cloud-based services.

That expansion boosted Fortinet's annual revenue from $1.49 billion in 2017 to $4.42 billion in 2022, which represented a compound annual growth rate (CAGR) of 24%, as its annual adjusted operating margin expanded from 15% to 27%. Its stock has also rallied more than 550% over the past five years as the ETFMG Prime Cyber Security ETF, which holds a basket of top cybersecurity stocks, rose less than 50%.

Unlike many of its other cybersecurity peers, Fortinet is firmly profitable by both generally accepted accounting principles (GAAP) and non-GAAP (adjusted) metrics. On a non-GAAP basis, its net income increased at a CAGR of 39% from $185 million in 2017 to $962 million in 2022. 

But can it maintain those growth rates?

Fortinet believes it can generate $10 billion in billings in 2025, which implies a CAGR of 21% from its $5.59 billion in billings in 2022. That forecast implies its top-line growth will barely slow down over the next three years.

During its fourth-quarter conference call, CFO Keith Jensen attributed the company's stable outlook to the "convergence and consolidation" of "network firewalls, Secure SD-WAN, 5G and OT security" into its "single operating system." Jensen also noted that Fortinet's development of its own ASIC chips, which are customized for its own hardware and operating system, gave it an edge against other cybersecurity appliance companies that used third-party chips.

Unlike many other tech companies, Fortinet didn't fret over macroeconomic headwinds at all during its latest conference call. Instead, Jensen said that even though Fortinet faced a "challenging global supply chain environment" during the year, its product revenue still rose 42% and represented its "highest annual product revenue growth rate in over 10 years."

Fortinet expects its adjusted operating margin to dip slightly to 25% to 26% in 2023 as it ramps up its investments in its cloud services, data centers, and facilities, but it still expects its adjusted earnings per share to rise 17% to 18%.

Fortinet is also swimming in cash. Its free cash flow rose 21% to $1.45 billion in 2022, and it spent more than 100% of that total ($1.99 billion) on buybacks. It repurchased its shares at an average price of $55.37 -- a discount of about 9% to its stock price as of this writing -- and reduced its outstanding shares by 4% throughout the year.

So is it too late to buy Fortinet's stock?

Fortinet's stock isn't cheap at 51 times forward earnings, but I believe its rock-solid growth rates justify that higher valuation. It's also fairly valued relative to its industry peers. For example, Palo Alto Networks -- which provides similar services and is growing at a comparable rate -- trades at 49 times forward earnings.

I believe Fortinet's glowing track record and crystal-clear road map make it a great long-term play on the growing cybersecurity sector. If it generates $10 billion in billings by 2025 -- which certainly seems achievable at this rate -- its stock could easily double in less than three years. Therefore, it's certainly not too late to add this high-quality stock to your portfolio.

Leo Sun has positions in Palo Alto Networks. The Motley Fool has positions in and recommends Fortinet and Palo Alto Networks. The Motley Fool has a disclosure policy.

Thu, 09 Feb 2023 02:52:00 -0600 Leo Sun en text/html https://www.fool.com/investing/2023/02/09/is-it-too-late-to-buy-fortinet-stock/
Killexams : Fortinet patches two critical bugs in its FortiNAC and FortiWeb products

Fortinet on Thursday patched two critical bugs in its FortiNAC and FortiWeb products that if exploited could allow an unauthenticated attacker to execute unauthorized code or commands via a specifically crafted HTTP request.

While both were rated critical, the FortiNAC bug — CVE-2022-39952 — was rated at 9.8 and affected versions 9.4.0; 9.2.0 through 9.2.5; 9.1.0 through 9.1.7; 8.8.0 through 8.8.11; 8.7.0 through 8.7.6; 8.6.0 through 8.6.5; 8.5.0 through 8.5.4; and 8.3.7.

The FortiWeb bug — CVE-2021-42756 — was reported as a multiple stack-based buffer overflow vulnerabilty in the proxy daemon of FortiWeb 5.x all versions; 6.0.7 and below; 6.1.2 and below; 6.2.6 and below; 6.3.16 and below; and 6.4.

Fortinet encourages its users to do the upgrades as specified in its advisories for the FortiNAC and FortiWeb products.

Mike Parkin, senior technical engineer at Vulcan Cyber, said  while there aren't a lot of details available on either of these issues beyond them being remote exploits, Fortinet did release updated versions that address the vulnerabilities. 

“As always, especially with a security product, deploying using industry best practices and keeping up to date on patches are just the starting points,” said Parkin.

When asked about how the FortiWeb bug dates back to 2021, Parkin said he wish he knew the reason for the long time lag.

“We've all seen these long delays between a CVE reservation and an genuine publication,” said Parkin. “It would be nice if there was more clarity about the delays when they happen.”

A Fortinet spokesperson said the FortiWeb bug was found internally and published in its February advisory as part of its product security incident response policies.

Fri, 17 Feb 2023 08:06:00 -0600 en text/html https://www.scmagazine.com/news/vulnerability-management/fortinet-patches-two-critical-bugs-in-its-fortinac-and-fortiweb-products
Killexams : fortinet inc.

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Thu, 16 Feb 2023 20:54:00 -0600 en-US text/html https://www.foxbusiness.com/quote?stockTicker=ftnt
Killexams : Fortinet Stock Is Rising Today: What's Going On?

Fortinet Inc FTNT shares are rising Wednesday morning after the company reported mixed fourth-quarter results and issued strong guidance. Several analysts also raised price targets on the stock following the company's quarterly results.

  • Q4 Revenue: $1.28 billion missed estimates of $1.29 billion
  • Q4 EPS: $0.44 beat estimates of $0.39

Fortinet said product revenue was up 43% year-over-year, while service revenue grew 27%. Billings jumped 32% compared to the prior year's quarter.

"Our market share gains are being driven by Fortinet's integrated and single platform approach to cybersecurity combined with FortiASIC technology, which lowers the management costs and the total cost of ownership for organizations," said Ken Xie, founder, chairman and CEO of Fortinet.

Outlook: Fortinet expects first-quarter revenue to be between $1.18 billion and $1.22 billion versus estimates of $1.18 billion. First-quarter adjusted earnings are expected to be in a range of 27 cents to 29 cents per share versus estimates of 27 cents per share.

Fortinet sees full-year 2023 revenue between $5.37 billion and $5.43 billion versus estimates of $5.36 billion. The company sees full-year adjusted earnings in a range of $1.39 to $1.41 per share versus estimates of $1.39 per share. 

Analyst Assessment: 

  • Piper Sandler analyst Rob Owens maintained Fortinet with a Neutral and raised the price target from $57 to $64.
  • Raymond James analyst Adam Tindle maintained Fortinet with an Outperform and raised the price target from $60 to $70.
  • JPMorgan analyst Brian Essex maintained Fortinet with an Overweight and raised the price target from $69 to $70.
  • Wells Fargo analyst Andrew Nowinski maintained Fortinet with an Overweight and raised the price target from $62 to $72.
  • Wedbush analyst Daniel Ives maintained Fortinet with an Outperform and raised the price target from $64 to $70.

One firm also downgraded the stock after shares charged higher on earnings: Keybanc analyst Michael Turits downgraded Fortinet from Overweight to Sector Weight.

FTNT Price Action: Fortinet has a 52-week high of $71.52 and a 52-week low of $42.61.

Fortinet shares are up 12.1% at $60.26 Wednesday morning, according to Benzinga Pro.

Photo: vicky gharat from Pixabay.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Wed, 08 Feb 2023 18:30:00 -0600 en text/html https://www.benzinga.com/news/earnings/23/02/30809401/fortinet-stock-is-rising-today-whats-going-on
Killexams : Why Fortinet Stock Is Soaring After Hours

Fortinet Inc FTNT shares are trading higher in Tuesday's after-hours session after the company reported mixed fourth-quarter results and issued strong guidance

What Happened: Fortinet said fourth-quarter revenue increased 33% year-over-year to $1.28 billion, which missed consensus estimates of $1.29 billion. The cybersecurity company reported fourth-quarter adjusted earnings of 44 cents per share, which beat average analyst estimates of 39 cents per share.

Fortinet said product revenue was up 43% year-over-year, while service revenue grew 27%. Billings jumped 32% compared to the prior year's quarter.

Free cash flow reached $497.2 million during the quarter, while cash flow from operations totaled $528.1 million. 

"Our market share gains are being driven by Fortinet's integrated and single platform approach to cybersecurity combined with FortiASIC technology, which lowers the management costs and the total cost of ownership for organizations," said Ken Xie, founder, chairman and CEO of Fortinet.

"Given our cost-for-performance advantage, the convergence of security and networking, and the consolidation of products and vendors, we expect to continue our solid growth trajectory."

Fortinet expects first-quarter revenue to be between $1.18 billion and $1.22 billion versus estimates of $1.18 billion. First-quarter adjusted earnings are expected to be in a range of 27 cents to 29 cents per share versus estimates of 27 cents per share.

On a full-year basis, Fortinet sees 2023 revenue between $5.37 billion and $5.43 billion versus estimates of $5.36 billion. The company sees full-year adjusted earnings in a range of $1.39 to $1.41 per share versus estimates of $1.39 per share. 

See Also: After-Hours Alert: Why Chipotle Stock Is Getting Cooked

FTNT Price Action: Fortinet has a 52-week high of $71.52 and a 52-week low of $42.61.

The stock was up 17% after hours at $62.90 at the time of publication, according to Benzinga Pro.

Photo: Kris from Pixabay.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Tue, 07 Feb 2023 10:48:00 -0600 en text/html https://www.benzinga.com/news/earnings/23/02/30781119/why-fortinet-stock-is-soaring-after-hours
Killexams : Fortinet Q4 Earnings: Despite The Challenging Macro, This Sizzles
Padlock Icon Cyber Security of Digital Data Network Protection, Secure Technology Blockchain Data Network Connectivity Background, And Secure Information for Privacy 3d rendering

KanawatTH

Investment Thesis

Fortinet (NASDAQ:FTNT) has a less-than-straightforward story. Its business makes the bulk of its revenues from its Product segment. Something that the Street has generally been skeptical of.

But what Fortinet has excelled in, is in delivering high ROI

FTNT revenue growth rates

FTNT revenue growth rates

FTNT Q4 2022

FTNT Q4 2022

Tue, 07 Feb 2023 20:28:00 -0600 en text/html https://seekingalpha.com/article/4576245-fortinet-stock-despite-challenging-macro-strong-q4-earnings
Killexams : Fortinet’s Earnings Rally is a Lesson in Market Expectations No result found, try new keyword!Fortinet (NASDAQ: FTNT) soared in after-hours trading, with gains of almost 13% following its fourth-quarter earnings results. While the Sunnyvale-based cybersecurity firm recorded a modest beat ... Wed, 08 Feb 2023 00:24:00 -0600 text/html https://www.nasdaq.com/articles/fortinets-earnings-rally-is-a-lesson-in-market-expectations Killexams : Why Fortinet Stock Topped the Market on Tuesday No result found, try new keyword!Well before market open this morning, Goldman Sachs' Gabriela Borges launched her coverage of Fortinet. She initiated it with a buy recommendation at a price target of $73, implying potential ... Tue, 14 Feb 2023 09:57:00 -0600 text/html https://www.nasdaq.com/articles/why-fortinet-stock-topped-the-market-on-tuesday Killexams : Fortinet Q4 Earnings: Strong Product Growth
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BlackJack3D

Investment Thesis

Fortinet, Inc. (NASDAQ:FTNT) is a U.S.-based cybersecurity company founded by Xie Jing back in 2000. The company has been one of the best compounders in the past decade, with the stock up over 1,000% during the period. The share price

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Wed, 08 Feb 2023 08:41:00 -0600 en text/html https://seekingalpha.com/article/4576481-fortinet-q4-earnings-strong-product-growth
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