Stock Monitor: Top Image Systems Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 6, 2018 / If you want access to our free earnings report on Fortinet, Inc. (NASDAQ: FTNT), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FTNT. The Company reported its first quarter fiscal 2018 operating and financial results on May 03, 2018. The network security Company reported better than expected revenue and earnings. The Company also provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Fortinet most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
Fortinet's total revenues were $399.0 million in the first quarter of 2018, reflecting an increase of 17% compared to $340.6 million in Q1 2017. The Company's revenue numbers topped analysts' estimates of $390.8 million.
During Q1 2018, Fortinet's Product revenues were $142.8 million, representing an increase of 6% compared to $135.3 million in Q1 2017. The Company's Service revenues were $256.2 million in the reported quarter, an increase of 25% compared to $205.3 million in the prior year's same quarter.
Fortinet's total billings were $463.2 million in Q1 2018, reflecting an increase of 15% compared to $403.3 million in Q1 2017.
During Q1 2018, Fortinet's GAAP operating income was $32.4 million, representing a GAAP operating margin of 8%. The Company's GAAP operating income was $5.4 million in Q1 2017, representing a GAAP operating margin of 2%. Fortinet's non-GAAP operating income was $70.7 million, representing a non-GAAP operating margin of 18% in Q1 2018 compared to a non-GAAP operating income of $43.0 million, representing a non-GAAP operating margin of 13% in Q1 2017.
Fortinet's GAAP net income was $41.6 million, or $0.24 per diluted share, in Q1 2018 compared to $10.7 million, or $0.06 per diluted share, in Q1 2017. The Company's non-GAAP net income was $57.0 million, or $0.33 per diluted share, in the reported quarter versus $31.0 million, or $0.17 per diluted share, in the year earlier comparable quarter. Fortinet's earnings surpassed Wall Street's estimates of $0.24 per share.
Fortinet's non-GAAP effective tax rate was 24% in Q1 2018 compared to 32% in Q1 2017.
Cash Matters
As of March 31, 2018, Fortinet's cash, cash equivalents, and investments were $1.39 billion compared to $1.35 billion as of December 31, 2017. For Q1 2018, the Company's cash flow from operations was $139.7 million compared to $129.7 million in Q1 2017. The Company's free cash flow was $128.1 million in the reported quarter compared to $116.2 million in the prior year's corresponding quarter.
During Q1 2018, Fortinet repurchased 2.5 million shares of its common stock for a total purchase price of $115.5 million. There were no shares repurchased during Q1 2017. For the reported quarter, the Company repatriated $130 million of overseas cash, and expects to be able to repatriate an additional $150 million over the remainder of 2018.
Fortinet's total deferred revenues were $1.40 billion as of March 31, 2018, an increase of 27% compared to $1.10 billion as of March 31, 2017.
Outlook
For the second quarter of the fiscal year 2018, Fortinet is forecasting revenues to be in the range of $420 million to $430 million, and billings to be in the band of $485 million to $495 million. The Company is expecting non-GAAP operating margin to be in the range of 18.5% to 19.0% for Q2 2018, including a benefit associated with the adoption of ASC 606 of approximately 250 basis points. Fortinet's non-GAAP earnings per diluted share are expected to be in the band of $0.34 to $0.36, assuming a non-GAAP tax rate of 24%.
For the full fiscal year 2018, Fortinet is projecting revenues to be in the range of $1.715 billion to $1.735 billion, and billings to be in the band of $2.040 billion to $2.065 billion. The Company is expecting non-GAAP operating margin to be in the range of 20.2% to 20.7% for FY18. Fortinet is estimating non-GAAP earnings per diluted share to be in the band of $1.51 to $1.55, assuming a non-GAAP tax rate of 24%.
Stock Performance Snapshot
June 05, 2018 - At Tuesday's closing bell, Fortinet's stock rose 1.17%, ending the trading session at $63.20.
Volume traded for the day: 1.46 million shares.
Stock performance in the last month — up 15.45%; previous three-month period — up 21.89%; past twelve-month period — up 60.53%; and year-to-date — up 44.66%
After yesterday's close, Fortinet's market cap was at $10.48 billion.
Price to Earnings (P/E) ratio was at 88.02.
The stock is part of the Technology sector, categorized under the Application Software industry. This sector was up 0.4% at the end of the session.
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