Palo Alto Networks (NYSE:PANW) earnings for the cybersecurity company’s fiscal second quarter of 2020 have PANW stock falling hard after-hours Monday. This comes after reporting adjusted earnings per share (EPS) of $1.19, which is better than Wall Street’s estimate of $1.12 per share. Unfortunately, its revenue of $816.7 million is nowhere close to analysts’ estimates of $843.26 million.
Here are some additional highlights from the most recent Palo Alto Networks earnings report.
- Adjusted EPS is down 21.19% from $1.51 in the fiscal second quarter of 2019.
- Revenue for the quarter comes in 14.83% higher than the $711.2 million from the same time last year.
- Operating loss of -$52.9 million is a switch from operating income of $6.6 million in fiscal Q2 of the previous year.
- The Palo Alto Networks earnings report also has net loss coming in at -$73.7 million.
- That’s a 2,734.62% wider net loss than the -$2.6 million reported in the same period of the year prior.
Nikesh Arora, Chairman and CEO of Palo Alto Networks, had this to say about the PANW stock earnings:
“Fiscal second quarter revenue was below our expectations primarily as a result of continued impact of sales incentives related to our Next-Generation Security products from our prior fiscal year. We have made progress to address this and have implemented several go-to-market programs to reignite our firewall sales growth.”
The Palo Alto Networks earnings report also includes its fiscal 2020 outlook. This has it expecting adjusted EPS of $4.55 to $4.65 on revenue of $3.35 to $3.39 billion. Wall Street’s estimates are for EPS of $4.96 on revenue of $3.47 billion.
PANW stock was down 14.04% after markets closed on Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
