NEW YORK (TheStreet) -- Shares of Fortinet (FTNT) - Get Report were dropping 14.34% to $29.20 in after-hours trading on Tuesday after the company reported downbeat preliminary results for the 2016 third quarter.
The Sunnyvale, CA-based cybersecurity solutions company now expects earnings per share between 15 cents and 16 cents, down from its prior outlook for earnings of 17 cents to 18 cents per share.
Analysts are looking for earnings of 18 cents per share for the period.
Fortinet now sees third-quarter revenue between $311 million and $316 million compared to its previous guidance of $319 million to $324 million. Analysts are modeling revenue of $322 million for the quarter.
Additionally, third-quarter billings are projected to be in the range of $343 million to $348 million vs. its prior view of $372 million to $376 million.
"Our third quarter results were primarily impacted by the lengthening of deal cycles as enterprises are becoming more strategic with their purchasing decisions and buying with less urgency than last year," CEO Ken Xie said in a statement.
Fortinet is scheduled to report its full third quarter results on October 27 after the market close.
More than 2.96 million of the company's shares changed hands so far today vs. its average volume of 1.38 million shares per day.
(Fortinetis held in the Growth Seeker portfolio. See all of the holdings with a free trial).
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
But the team also finds weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: FTNT