Fortinet Surges as Growth Tops Estimates: San Francisco Mover

Fortinet Inc. (FTNT), a maker of computer- network security systems, rose the most since November 2009 after reporting fourth-quarter sales that topped analysts’ estimates, buoyed by large corporate contracts.

Fortinet shares climbed 22 percent to $23.59 at the close in New York. The stock has climbed 4.9 percent in 12 months, compared with a 14 percent increase for the Russell 1000 Index.

The Sunnyvale, California-based company yesterday said quarterly sales jumped 25 percent to $151.2 million, while analysts on average had projected $144.3 million, according to data compiled by Bloomberg. Software deals of more than $500,000 fueled the revenue gains, said Brian Freed, an analyst at Wunderlich Securities Inc.

“Fortinet grew their large deals 80 percent year over year,” said Freed, who rates the shares a hold, in an interview. “I’m definitely more positive than I was yesterday.”

Fourth-quarter profit, excluding some costs, was 17 cents a share, the company said in a statement, compared with an average analyst estimate of 15 cents. Sales in the first quarter will be $138 million to $141 million, Fortinet said on a conference call.

To contact the reporter on this story: Karl Baker in New York at

To contact the editor responsible for this story: Tom Giles at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.