Nov 5 (Reuters) - Fortinet FTNT.O forecast fourth-quarter revenue slightly below Wall Street estimates on Wednesday as clients cut spending amid broader economic uncertainty.
Stubborn inflation and high interest rates are prompting businesses to trim IT spending and delay new orders, weighing on cybersecurity firms such as Fortinet.
Shares of the company fell nearly 12% in extended trading.
The company expects fourth-quarter revenue to $1.83 billion to $1.89 billion, with the midpoint slightly below analysts' average estimate of $1.88 billion, according to data compiled by LSEG.
The California-based company is transitioning to a subscription-led model and integrating generative AI across its products as demand for cloud security rises.
The company, which offers integrated cybersecurity products including firewalls, intrusion prevention systems and cloud-based threat protection, reported third-quarter revenue of $1.72 billion, beating the estimate of $1.70 billion.
On an adjusted basis, the company earned 74 cents a share for the quarter ended Sept. 30, compared with the estimate of 63 cents.
The cybersecurity firm competes with peers including Palo Alto Networks, Cisco Systems and Check Point Software Technologies.
(Reporting by Nithyashree R B in Bengaluru; Editing by Tasim Zahid)
((NithyashreeRB@thomsonreuters.com;))
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