Fortinet (FTNT) on Tuesday reported December-quarter earnings, revenue and billings that topped analyst estimates amid lowered expectations. The cybersecurity firm’s 2024 revenue and billings guidance for FTNT stock came in better than feared.

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On the stock market today, FTNT stock jumped more than 10% to 74.70 in extended trading.

Fortinet earnings in the fourth quarter rose 16% to 51 cents on an adjusted basis.  Revenue climbed 10% to $1.42 billion.

Analysts expected Fortinet earnings of 43 cents a share on sales of $1.41 billion for the period ended Dec. 31.

Additionally, the Sunnyvale, Calif.-based firm said billings, a sales growth metric, rose 8.5% to $1.86 billion compared with analyst estimates of $1.63 billion.

Fortinet Stock: Guidance Better Than Feared

For full-year 2024, Fortinet said it expects per-share earnings in a range of $1.65 to $1.70 per share. The cybersecurity firm forecast revenue in a range of $5.71 billion to $5.81 billion. Fortinet said it expects billings in a range of $6.4 billion to $6.6 billion.

Analysts had projected earnings of $1.66 per share on revenue of $5.93 billion and billings of $6.477 billion.

Heading into the Fortinet earnings report, the cybersecurity stock was up 12% in 2024 after under-performing last year.

The company competes in the firewall network security market versus Palo Alto Networks (PANW), Check Point Software Technologies (CHKP) and others. Firewalls block online intrusions and monitor web-based apps.

FTNT Stock: Firewall Growth Slows

Growth has slowed in the firewall market as companies buy less computer network gear for on-premises data centers. Companies are shifting business apps and workloads to distributed cloud platforms.

Fortinet and many other cybersecurity firms are focused on a new growth market:  Secure Access Service Edge. SASE offers a fast and cost-effective way of securing an organization’s branch offices and remote workers.

FTNT stock holds a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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