Fortinet stock slides on Q2 report, revises full year estimates
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Fortinet (NASDAQ:FTNT) shares plunged 13% during extended trading on Wednesday after the cybersecurity firm reported a mixed set of second quarter results and issued revised estimates for full-year 2022.
The California-based firm generated adj. EPS of $0.24 that topped Wall Street estimates, but revenue of $1.03B (+28.6% Y/Y) only managed to be in-line with consensus.
By segment, product revenue grew 34.3% Y/Y to $400.7M, while service revenue logged a 25.2% Y/Y growth to $629.4M. Total deferred revenue was $3.93B as of June 30, 2022, an increase of 35.3% Y/Y.
Total bookings for the quarter came at $1.38B (+42.1% Y/Y), while total billings were $1.30B, up 35.7% Y/Y. As of June 30, 2022, the firm's backlog stood at $349.9M compared to $161.9M as of December 31, 2021.
However, adj. operating margin slipped to 24.8% from 25.4% last year. 
Outlook: Fortinet (FTNT) revised its estimates for full-year 2022, expecting diluted non-GAAP EPS between $1.01-$1.06 vs. $1.00 consensus (prior outlook: $5.00 to $5.15). The estimate assumes a diluted share count of 810M-820M and take into account the previously announced five-for-one stock split.
Billings are now seen at $5.56B to $5.64B compared to $5.50B to $5.58B previously; adj. operating margin is expected between 25% and 26%, vs. 24%-26% previously; and adj. gross margin is expected between 75% to 76%, vs. 74% to 76% previously.

The company continues to expect revenue in the range of $4.35B to $4.40B vs. $4.38B consensus.