Fortinet Surges as Growth Tops Estimates: San Francisco MoverKarl Baker
Fortinet Inc., 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.