Cyber Security ETFs Outperforming On Solid Q1 Earnings

Amid market volatility, the cybersecurity industry is riding high on better-than-expected earnings results, pushing many stocks to multi-year highs. This is especially true as most of the cybersecurity firms beat the Zacks Consensus Estimate on both earnings and revenues and offered robust guidance.

Let’s dig into the earnings results of some of the cybersecurity firms that have the largest allocation to the ETFs in this niche area of the technology sector:

Cyber Security Earnings in Focus

Akamai Technologies (AKAM - Free Report) reported Q1 earnings per share of 79 cents and revenues of $669 million, outpacing the Zacks Consensus Estimate of 70 cents and $654 million, respectively. On a year-over-year basis, earnings surged 21.3% while revenues were up 11.4%. For the second quarter of 2018 and full year, the company expects earnings per share in the range of 79-83 cents and $3.15-$3.25, respectively. Revenues are expected in the range of $658-$670 million for the second quarter and $2.69-$2.72 billion for the full year.

Proofpoint (PFPT - Free Report) earnings per share came in at 30 cents, well ahead of the Zacks Consensus Estimate of 16 cents and up 36% from the year-ago period. Revenues of $162 million increased 40.5% year over year and outpaced the estimated $151 million. For the second quarter, the company expects revenues in the range of $168-$170 million and earnings per share in the range of 15-17 cents. For the full year, Proofpoint increased its revenue guidance to $702-$706 million from $691-$696 million and earnings per share outlook to $1.00-$1.09 from 84-$91 cents.

Fortinet (FTNT - Free Report) posted earnings per share of 33 cents and revenues of $399 million, easily topping the Zacks Consensus Estimate of 24 cents and $390 million, respectively. On a year-over-year basis, earnings increased from 17 cents in the year-ago quarter while revenues were up 17.1%. The company projects revenues in the range of $420–$430 million and earnings per share of 34-36 cents for the ongoing second quarter. For 2018, it raised revenues guidance $1.715-$1.735 billion from $1.695-$1.715 billion and earnings per share guidance to $1.51-$1.55 from $1.30-$1.32.

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