Palo Alto Networks (PANW) reported fiscal earnings and revenue in the second quarter Monday, which was analysts’ forecast. But the Palo Alto share fell even as revenue and billing guidance was adjusted by Wall Street targets in April.
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Amid high expectations, Palo Alto earnings for the January quarter rose to $ 1.55 per share, up 30% from a year earlier. The company rose 25% to $ 1.02 billion. Billings rose 22% to $ 1.2 billion from estimates of $ 1.18 billion.
Analysts had expected Palo Alto’s earnings of $ 1.43 per share on sales of $ 986 million for the period ended January 31. A year earlier, Palo Alto’s earnings were $ 1.19 per share at $ 817 million.
Product revenue increased 3% to $ 254.7 million, while enrollment revenue increased 34% to $ 762.2 million, Palo Alto said.
Palo Alto shares fell 4.3% today to nearly 368 in long-term stock market trading.
Palo Alto earnings management disappoints
For the current quarter ending in April, Palo Alto expects earnings of $ 1.28 per share at the center of its guidance, with revenue of $ 1.05 billion to $ 1.06 billion. Analysts have estimated a share of $ 1.28 per share on revenue of $ 1.05 billion. Palo Alto predicts invoices of $ 1.23 billion against analysis estimates of $ 1.22 billion.
The cybersecurity share pulled into the earnings report with an entry point of 375.10. A buying zone of 5% extends to 393.86.
Palo Alto stock holds an IBD Relative Strength Rating of just 77 out of a possible 99. PANW shares erupted from a double bottom in October.
Firewall devices protect computer networks by blocking online intrusions and monitoring web-based applications
In June 2018, Palo Alto introduced a new CEO to make strategic changes. The new CEO, Nikesh Arora, was a former CEO at Alphabet‘s (GOOGL) Google and SoftBank Group. Arora begins with an acquisition to build a broad, cloud-based platform “Prisma”.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cyber security and cloud computing.
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