Updated from 4:49 p.m. EDT with fourth quarter and full-year 2014 forecast.
SAN FRANCISCO (TheStreet) – Fortinet (FTNT) posted a stronger third quarter performance than Wall Street analysts expected, as the network security company benefited from greater demand for security products in the wake of high-profile breaches and the strength of its product portfolio.
Shares of Fortinet rose 1.7% in after-hours trading to $25.60. It had closed at $25.17, down 0.40% during the regular session.
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Fortinet reported net earnings of 12 cents a share on revenue of $193.3 million in the quarter, up 25% year over year. Billings were up 29% to $213.2 million, compared with year ago figures. Analysts were expecting 11 cents a share on revenue of $184.9 million, according to a survey from Thomson Reuters.
During the earnings call with analysts, Fortinet raised its full-year 2014 guidance and gave a fourth quarter forecast. The network security provider expects revenue of $752 million to $757 million for 2014 and earnings of 47 cents to 48 cents per share.
As for its fourth quarter forecast, Fortinet expects to earn 13 cents to 14 cents on revenue of $206 million to $211 million. That forecast is a little lighter than analysts had expected but its revenues are stronger, according to analysts surveyed by Thomson Reuters, who expect net income of 15 cents a share on revenue of $202.9 million.
"Our investments in sales and marketing have continued to pay off evidenced by another quarter of traction in both new customer wins, as well as expansion within our existing large and growing global customer base. We currently believe that Fortinet remains well positioned for the remainder of the year and into 2015," said Ken Xie, Fortinet CEO, in a statement.