Palo Alto Networks stock tanks 13% despite beating Q2 estimates

February 20, 2024 01:11 PM PST | By Invezz

Palo Alto Networks stock tanks 13% despite beating Q2 estimates — Image source: Invezz

Why is Palo Alto Networks stock down in after-hours?

The stock is being punished primarily on muted guidance. Palo Alto Networks lowered its outlook for full-year billings to $10.1 billion to $10.2 billion on Tuesday.

Its forecast for up to $8.0 billion in revenue in fiscal 2024 also came in shy of analysts at $8.19 billion. Still, Nikesh Arora – the chief executive of Palo Alto Networks said in a press release today:

“Our leadership across all of our three platforms and growing cross-platform adoption puts us in a strong and unique position. We are activating our accelerated platformization and consolidation strategy, as well as our AI leadership strategy.”

Guidance that $PANW issued for its current fiscal quarter this evening also fell short of Street estimates. The cybersecurity stock has more than doubled over the trailing twelve months. Watch here: https://www.youtube.com/embed/QDvYoRorjTE?feature=oembed

Palo Alto Networks Q2 earnings snapshot

Earned $1.7 billion versus the year-ago $0.1 billion
Per-share earnings also climbed from 25 cents to $4.89
Adjusted EPS printed at $1.46 as per the earnings report
Revenue jumped 19% year-over-year to $1.98 billion
Consensus was $1.30 a share on $1.97 billion in revenue
$10.8 billion in remaining performance obligations – up 22%

$PANW said its adjusted operating margin stood at 29% – up 580 basis points in Q2. According to CFO Dipak Golechha:

Disciplined execution on profitable growth gives us confidence to maintain EPS and free cash flow guidance, while making additional investments in platformization and consolidation strategies to accelerate our long-term growth trajectory.

Now live from stage, "AI can be used for good or can be used for bad, it's about the actor" Inma Martinez at #IgniteYourSecurity event in Riyadh. pic.twitter.com/88TrOmBXTV — Palo Alto Networks EMEA (@PaloAltoNetEMEA) February 12, 2024

The post Palo Alto Networks stock tanks 13% despite beating Q2 estimates appeared first on Invezz

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