Palo Alto Networks’ stock tumbles as earnings forecast underwhelms

by | Feb 20, 2024 | Stock Market

Palo Alto Networks Inc. shares were tumbling in Tuesday’s extended session after the cybersecurity company came up short with its forecasts for the current quarter and trimmed its full-year revenue outlook. The company models fiscal third-quarter revenue of $1.95 billion to $1.98 billion along with $2.30 billion to $2.35 billion in billings, a metric that takes into account deferred revenue. The FactSet consensus was for $2.04 billion in revenue and $2.62 billion in billings.

Palo Alto Networks
PANW,
-0.09%
also projects $1.24 to $1.26 in adjusted earnings per share, while analysts were expecting $1.29. The stock was down 14% in after-hours trading Tuesday. The company also took down its full-year forecast, which now calls for $10.1 billion to $10.2 billion in total billings as well as $7.95 billion to $8.00 billion in total revenue. Palo Alto Network’s earlier forecast was for $10.7 billion to $10.8 billion in billings and $8.15 billion to $8.20 billion in total revenue. Chief Financial Officer Dipak Golechha said in a release that Palo Alto Networks was maintaining its free-cash-flow and adjusted EPS fore …

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[mwai_chat context=”Let’s have a discussion about this article:nnPalo Alto Networks Inc. shares were tumbling in Tuesday’s extended session after the cybersecurity company came up short with its forecasts for the current quarter and trimmed its full-year revenue outlook. The company models fiscal third-quarter revenue of $1.95 billion to $1.98 billion along with $2.30 billion to $2.35 billion in billings, a metric that takes into account deferred revenue. The FactSet consensus was for $2.04 billion in revenue and $2.62 billion in billings.

Palo Alto Networks
PANW,
-0.09%
also projects $1.24 to $1.26 in adjusted earnings per share, while analysts were expecting $1.29. The stock was down 14% in after-hours trading Tuesday. The company also took down its full-year forecast, which now calls for $10.1 billion to $10.2 billion in total billings as well as $7.95 billion to $8.00 billion in total revenue. Palo Alto Network’s earlier forecast was for $10.7 billion to $10.8 billion in billings and $8.15 billion to $8.20 billion in total revenue. Chief Financial Officer Dipak Golechha said in a release that Palo Alto Networks was maintaining its free-cash-flow and adjusted EPS fore …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]

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