Fortinet shares sink after-hours on warning
Fortinet warns 1Q results will be lower than expected
Fortinet shares tumbled in after-hours trading Wednesday after the network security company lowered its first-quarter forecast.
The company said a number of U.S. service provider deals did not close as expected. It also struggled with larger economic pressures overseas and, to a lesser extent, problems with timing of new product releases and inventory shortages.
Fortinet warned that it expects adjusted earnings of 10 cents per share, down from its previous 11 to 12 cents per share forecast. Analysts polled by FactSet expected 12 cents per share.
The company now anticipates total revenue to range from $134 million to $136 million range, versus its earlier guidance of $138 million to $141 million. Analysts estimated $140.4 million.
Fortinet shares fell $3.15, or 14.4 percent, to $18.70 in after-hours trading.
