Fortinet shares fall after services forecast cut

Fortinet’s third-quarter revenue and adjusted earnings beat analyst expectations, but shares fell sharply after the cybersecurity company lowered its full-year services revenue forecast and reported slower growth in that business than in product sales. Fortinet reported revenue of $2.08 billion for the quarter ended September 30, up 20% from a year earlier. Adjusted earnings were 91 cents per share, above analyst estimates of 85 to 86 cents. Product revenue increased 37% to $765 million, while services revenue rose 13% to $1.31 billion. Billings grew 29% to $2.34 billion. The company reduced its full-year services revenue outlook to $5.15 billion to $5.17 billion, from a previous range of $5.18 billion to $5.22 billion. It raised its full-year revenue and billings guidance, and increased its share-repurchase authorization by $1.2 billion. The results therefore combined stronger-than-expected overall performance and billings with a lower forecast for services. Fortinet shares dropped about 25% after the report, with the decline occurring in after-hours or premarket trading. In Thursday premarket trading, one reported price was $127.70, down about 27% from Wednesday’s close of...