It's been a good week for Fortinet, Inc. (NASDAQ:FTNT) shareholders, because the company has just released its latest full-year results, and the shares gained 6.7% to US$108. The result was positive overall - although revenues of US$6.0b were in line with what the analysts predicted, Fortinet surprised by delivering a statutory profit of US$2.26 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Fortinet

Taking into account the latest results, the consensus forecast from Fortinet's 40 analysts is for revenues of US$6.75b in 2025. This reflects a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 3.8% to US$2.19 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$6.63b and earnings per share (EPS) of US$2.20 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to US$110. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Fortinet analyst has a price target of US$135 per share, while the most pessimistic values it at US$62.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Fortinet's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 21% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. Factoring in the forecast slowdown in growth, it looks like Fortinet is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Fortinet. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Fortinet going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Fortinet's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.