Why Is Palo Alto Networks (PANW) Stock Down 24% Today?


  • Palo Alto Networks (PANW) stock is falling on Wednesday following its latest earnings report.
  • The company’s guidance in that report isn’t inspiring investors.
  • That’s despite the firm beating estimates for fiscal Q2 2024.
PANW Stock - Why Is Palo Alto Networks (PANW) Stock Down 24% Today?

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Palo Alto Networks (NASDAQ:PANW) stock is falling on Wednesday following the release of the cybersecurity company’s fiscal second-quarter 2024 earnings report.

What’s dragging the stock lower today is the outlook in its latest earnings report. The company’s estimates for fiscal Q3 and the full year of 2024 don’t have investors excited.

Starting with its fiscal Q3 guidance, Palo Alto Networks expects adjusted EPS to range from $1.24 to $1.26. That would come in below Wall Street’s estimate of $1.29 per share. Revenue guidance of $1.95 billion to $1.98 billion would also come in short of analysts’ estimate of $2.04 billion.

The outlook for fiscal 2024 doesn’t help matters with its adjusted EPS of between $5.45 and $5.55. At the midpoint, that’s below Wall Street’s estimate of $5.51 per share. Palo Alto Networks’ revenue guidance of between $7.95 billion and $8 billion would also miss analysts’ estimate of $8.19 billion.

Strong Earnings Couldn’t Save PANW Stock

The lackluster outlook is unfortunate, as Palo Alto Networks beat out estimates for fiscal Q2. The company’s adjusted EPS and revenue were $1.46 and $1.98 billion, respectively. Both of these beat out Wall Street’s estimates of $1.30 per share and revenue of $1.97 billion.

PANW stock is down 23.9% as of Wednesday morning with more than 700,000 shares traded. That’s still below its daily average trading volume of about 3.7 million shares.

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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