Network security software maker Fortinet Inc reported quarterly results above analysts’ estimates, helped by strong demand for support services and higher software renewals.
Service revenue, which accounted for a majority of Fortinet’s total revenue of $154.7 million, was up 20 percent in the third quarter.
The company, a maker of firewalls, anti virus software and tools to speed up data across networks, said it expects fourth-quarter earnings of 13-14 cents per share on revenue of $162-$167 million.
Analysts were expecting earnings of 15 cents per share on revenue of $167.3 million.
“Their guidance is more a reflection of conservatism given the macro headwinds, which the investors have seem to taken in stride,” William Blair and Co analyst Jonathan Ho said.
Fortinet shares were up 8 percent in after-hours trading.
The company’s net income fell to $11 million, or 7 cents per share, in the third quarter, from $17.2 million, or 10 cents per share, a year earlier.
Excluding items, the company earned 12 cents per share.
Analysts had expected earnings of 11 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose 14 percent to $154.7 million, ahead of analysts’ expectations of $151.1 million.
The company also reaffirmed its July guidance for billings revenue for the fourth quarter.
Shares of the Sunnyvale, California-based company were trading at $22.5 in extended trading after closing at $20.56 on the Nasdaq on Wednesday.
(Reporting By Aditya Kondalamahanty in Bangalore; Editing by Maju Samuel)