Cybersecurity ETFs Maintain Strength On Solid Q2 Earnings

In the present digital world, the need for cybersecurity is growing by leaps and bounds. This is because digital transformation has increased the risk of security breaches and threats. In fact, we have seen years worth of digital transformation in a few months amid the pandemic. Solid earnings have added to the strength. Most of the cybersecurity firms came up with stronger-than-expected earnings, outpacing the Zacks Consensus Estimate for both earnings and revenues.

Let’s check out the second-quarter results of some of the cybersecurity firms that have the largest allocation to the ETFs in this niche area of the technology sector:

Cybersecurity Earnings in Focus

Fortinet (FTNT - Free Reportposted earnings per share of 82 cents, easily topping the Zacks Consensus Estimate by 26.2% and improving significantly from the year-ago quarter’s 58 cents. Revenues rose 18% year over year to $615.5 million and were above the consensus mark of $598.3 million. The company projects revenues in the range of $630-$645 million and earnings per share of 76-78 cents for the third quarter.

FireEye (FEYE - Free Reportreported earnings per share of 9 cents while the Zacks Consensus Estimate was pegged at a loss of 2 cents and the year-ago loss was of a penny. Revenues increased 6% year over year to $230 million and surpassed the consensus mark of $214.6 million. FireEye expects revenues of $225-$229 million and earnings per share of 6-8 cents for the third quarter. For the full year, the company raised its revenue guidance to $905-$925 million from $880-$900 million and earnings per share guidance to 22-26 cents, up from the previous projection of 3-7 cents.

Proofpoint (PFPT - Free Reportoutpaced the Zacks Consensus Estimate by 30.8% for earnings and 2.2% for revenues. Earnings per share increased 24.4% from the year-ago quarter while revenues jumped 20.5%. For the third quarter, the company expects revenues in the range of $260-$262 million and earnings per share of 37-40 cents. For the full year, Proofpoint raised the guidance to $1.035-$1.037 billion from the previous projection of $1.005-$1.030 billion for revenues and $1.64-$1.70 from $1.41-$1.46 for earnings per share.

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