Fortinet Flies Past Estimates; Shares Surge

Shares of Fortinet were rallying in late trades after the security specialist topped Wall Street expectations for its third-quarter results.
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Fortinet story updated with fourth-quarter guidance and CEO comment.

SUNNYVALE, Calif. (

TheStreet

-- Shares of

Fortinet

(FTNT) - Get Report

jumped in extended trading after the security specialist topped Wall Street expectations for its third-quarter results.

After Thursday's closing bell, Sunnyvale, Calif-based Fortinet reported revenue of $85 million, a 29% hike on the same period last year, and well above Wall Street's forecast of $76.94 million. Excluding items, Fortinet earned 17 cents a share, up from 14 cents a share in the year-ago quarter. The average estimate of analysts surveyed by

Thomson Reuters

was for earnings of 11 cents a share.

Investors responded positively to the news, and Fortinet's shares surged $2.29, or 9.27%, to $27.01 in extended trading on volume of roughly 95,000.

Fortinet, which competes with

Cisco

(CSCO) - Get Report

,

Check Point Systems

(CHKP) - Get Report

and

McAfee

(MFE)

, touts its FortiGate appliance as a sort of Swiss Army knife for network security.

Combining firewall, antivirus, VPN and intrusion prevention systems, FortiGate is becoming increasingly popular, according to Ken Xie, the Fortinet CEO.

"Our ability to execute across all verticals and geographies drove our strong performance this quarter," explained Xie, in a statement.

The security company also gave bullish fourth-quarter guidance on Thursday, forecasting revenue between $85 million and $87 million, well above analysts' prediction of $81.49 million. Excluding items, Fortinet expects earnings between 13 cents and 14 cents a share. Analysts surveyed by Thomson Reuters had predicted earnings of 12 cents a share.

Fortinet, which is one of

TheStreet's

Breakout Stocks, has recently been mentioned as

an attractive acquisition target, potentially for IBM (IBM) - Get Report

or

Hewlett-Packard

(HPQ) - Get Report

.

The company, however, is shrugging off all the M&A chatter. "We're more focused on growing ourselves," Xie told

TheStreet

during a phone interview shortly after the results were announced. "We see focusing on our own growth as the best strategy for the company and the shareholders."

--Written by James Rogers in New York.

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