Cybersecurity stocks drop as Fortinet, Cloudflare results disappoint By Investing.com
Shares in major cybersecurity services providers slipped in Thursday afterhours trade after sector names Fortinet (NASDAQ:) and Cloudflare (NYSE:) reported results.
Their shares are down 8.8% and 14.1%, respectively.
Fortinet reported adjusted earnings per share (EPS) of $0.43, which was $0.05 higher than analyst expectations. The company’s total revenue for the quarter was $1.35 billion, marking a 7% year-over-year increase and exceeding the consensus estimate of $1.34 billion.
Still, the company’s shares fell.
In a separate development, Cloudflare’s fiscal first-quarter earnings amounted to an EPS of $0.16, surpassing the expected $0.13. The company’s revenue reached $378.6 million, also beating the forecast of $373.24 million.
Looking ahead, Cloudflare has set its Q2 2024 EPS guidance at $0.14, which is marginally higher than the consensus estimate of $0.13. The company’s revenue forecast for the second quarter ranges between $393.5 million and $394.5 million, closely aligning with the consensus projection.
For the entire year of 2024, Cloudflare expects its EPS to be in the range of $0.60 to $0.61, with the lower end meeting the analysts’ expectations, and anticipates full-year revenue to be between $1.648 billion and $1.652 billion, matching the consensus.
It could be that investors were looking for stronger revenue growth.
Earlier today, Cyberark stock fell 1.5% after the company reported results.
In response to these developments, Palo Alto Networks (NASDAQ:) shares are trading more than 2% lower in afterhours trade while CrowdStrike (NASDAQ:) stock is down 1.7%.
