Palo Alto Networks Earnings: PANW Stock Falls 7% on Weak Outlook

Palo Alto (NYSE:PANW) earnings for the American cybersecurity company’s fiscal first quarter of 2020 have PANW stock taking a beating on Monday. This is despite its Non-GAAP EPS of $1.05 beating out Wall Street’s estimate of $1.03. Revenue of $771.90 million is also better than analysts’ estimates of $767.77 million.;

Palo Alto Networks Earnings: PANW Stock Falls 7% on Weak Outlook

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Let’s take a closer look at the most recent Palo Alto earnings report.

  • Adjusted per-share earnings are down 10.26% from the $1.17 reported during the same time last year.
  • Revenue is 17.67% better than the 656.00 million reported in the fiscal first quarter of 2019.
  • Operating loss of -$51.80 million is 61.37% worse YoY than -$32.10 million.
  • The Palo Alto earnings report also includes a net loss of -$59.60 million.
  • That’s 55.61% wider than the company’s net loss of -$38.30 million from the same period of the year prior.

Nikesh Arora, Chairman and CEO of Palo Alto, says this about the PANW stock earnings.

“Palo Alto Networks’ multi-platform approach to security is clearly resonating with our customers. Our Next-Gen Security offerings performed extremely well in our first fiscal quarter, bolstering our confidence in our long-term prospects for Prisma and Cortex.”

The bad news in the Palo Alto earnings report comes from its outlook for the fiscal full year of 2020. The company is expecting adjusted earnings per share to range from $4.90 to $5.00. Unfortunately for PANW stock, this will have it missing Wall Street’s estimate of $5.07 for the period.

PANW stock was down 7.50% in after-hours trading on Monday. The stock closed out the day up 1.42%.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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