Fortinet, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
There's been a major selloff in Fortinet, Inc. (NASDAQ:FTNT) shares in the week since it released its quarterly report, with the stock down 24% to US$136. It looks like a credible result overall - although revenues of US$2.1b were in line with what the analysts predicted, Fortinet surprised by delivering a statutory profit of US$0.86 per share, a notable 12% above expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Fortinet from 41 analysts is for revenues of US$9.10b in 2027. If met, it would imply a decent 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 10% to US$3.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$9.05b and earnings per share (EPS) of US$3.38 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Fortinet
With no major changes to earnings forecasts, the consensus price target fell 14% to US$146, suggesting that the analysts might have previously been hoping for an earnings upgrade. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Fortinet, with the most bullish analyst valuing it at US$190 and the most bearish at US$107 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fortinet shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Fortinet's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2027 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Fortinet.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Fortinet's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Fortinet's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Fortinet going out to 2028, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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