ugly operating margin guidance yoy and full year FY15
some analysts seem outright puzzled on the call about the disappointing operating margin guidance (just 12% in Q1 and just 17% for the full FY). Revenue target at "twice the market growth rate" seems also to fall short on at least some more optimistic estimates. So eps estimates for the year clearly will have to come down which is disappointing to say the very least.
Not giving guidance for the full year doesn't help things either and the very muted new CFO performance on the call makes on wonder when the next guy for this job might arrive.
Great Q4 but obviously more of a budget flush and a generally improving market then a function of the company's own outperformance - otherwise they wouldn't have to invest that heavily to make good for former "underinvestment into growth". All in all a very disappointing outlook given that the company has been talked up as "the next big thing". Would short the shares as the stock is still up 4% in after hours. Would expect very cautious analyst commentary (at least from the Robert W. Baird guy) and perhaps some downgrades.
Try to talk it down all you want but I think we are up from i here. Great Q4, strong EPS, good FCF, no debt. Maybe you like some of the new guys with negative EPS, the over hyped players. Me, I like FTNT at these levels.
And, FTNT is finally maturing from a pure channel play to an enterprise play. They are finally building out their sales and marketing teams to form a strong distribution and GTM model.