Palo Alto Networks (PANW) Stock Is Down in After-Hours Trading Despite Earnings Beat
NEW YORK (TheStreet) -- Shares of Palo Alto Networks (PANW) - Get Report were falling 2% to $143 after-hours Monday despite the networking and communication devices positive fiscal second quarter results, in which it beat analysts' estimates for earnings and revenue.
Palo Alto Networks reported earnings of 19 cents a share for the fiscal second quarter, beating analysts' estimates of 17 cents a share. Revenue grew 54.3% year over year to $217.65 million for the quarter, beating analysts' estimates of $204 million.
The company said it expects to report earnings of 19 cents to 20 cents a share and revenue of $219 million to $223 million for the fiscal third quarter. Analysts' expect earnings of 19 cents and revenue of $214.17 million for the fiscal third quarter.
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"New customer additions and expansion in existing customers resulted in record billings, revenue and deferred revenue in the second quarter," CFO Steffan Tomlinson said in a statement. "With approximately 47 percent of total revenue coming from recurring services, our hybrid SaaS-revenue model and ramping economies of scale continue to drive leverage in the business, resulting in sequential and year-over-year expansion in non-GAAP gross margin, non-GAAP operating margin and cash flow from operations."
TheStreet Ratings team rates PALO ALTO NETWORKS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PALO ALTO NETWORKS INC (PANW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."
You can view the full analysis from the report here: PANW Ratings Report