Why Fortinet (FTNT) International Revenue Trends Deserve Your Attention

Have you assessed how the international operations of Fortinet (FTNT) performed in the quarter ended December 2024? For this network security company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.Upon examining FTNT's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.The company's total revenue for the quarter amounted to $1.66 billion, showing rise of 17.3%. We will now explore the breakdown of FTNT's overseas revenue to assess the impact of its international operations. Trends in FTNT's Revenue from International MarketsEurope Middle East and Africa generated $692.3 million in revenues for the company in the last quarter, constituting 41.70% of the total. This represented a surprise of +9.36% compared to the $633.06 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe Middle East and Africa accounted for $599.3 million (39.74%), and in the year-ago quarter, it contributed $575.6 million (40.68%) to the total revenue.During the quarter, Asia Pacific and Japan contributed $301.9 million in revenue, making up 18.19% of the total revenue. When compared to the consensus estimate of $311.79 million, this meant a surprise of -3.17%. Looking back, Asia Pacific and Japan contributed $284.8 million, or 18.88%, in the previous quarter, and $270.4 million, or 19.11%, in the same quarter of the previous year. International Revenue Predictions For the current fiscal quarter, it is anticipated by Wall Street analysts that Fortinet will report a total revenue of $1.53 billion, which reflects an increase of 12.9% from the same quarter in the previous year. The revenue contributions are expected to be 38.6% from Europe Middle East and Africa ($589.03 million) and 19.8% from Asia Pacific and Japan ($302.82 million).For the full year, a total revenue of $6.8 billion is expected for the company, reflecting an increase of 14.1% from the year before. The revenues from Europe Middle East and Africa and Asia Pacific and Japan are expected to make up 38.1% and 18.9% of this total, corresponding to $2.59 billion and $1.28 billion respectively. Concluding Remarks Relying on international markets for revenues, Fortinet faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.Fortinet, bearing a Zacks Rank #2 (Buy), is expected to outperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Assessing Fortinet's Stock Price Movement in Recent Times Over the past month, the stock has seen an increase of 13.9% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2.1%. The Zacks Computer and Technology sector, Fortinet's industry group, has descended 0.8% over the identical span. In the past three months, there's been an increase of 14.3% in the company's stock price, against a rise of 1.2% in the S&P 500 index. The broader sector has increased by 0.6% during this interval.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. 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