Shares of cyber security firm Palo Alto Networks (PANW) was falling after hours on Wednesday despite topping analysts' top- and bottom-line estimates and also providing current quarter revenue guidance ahead of expectations.
However, forward looking earnings guidance fell short, likely hurting the stock. Shares were down 4.1% to $206.50 in after hours trading.
The Santa Clara-based company reported a 28% increase in fiscal third quarter revenue to $726.6 million yielding adjusted earnings of $1.31 per share. Analysts polled by FactSet were expecting the company to report earnings of $1.25 per share.
For the current quarter, the company expects to generate revenue between $795 million and $805 million, ahead of analyst estimates of $793 million. But it expects EPS of between $1.41 and $1.42 per share compared to analyst estimates of $1.55 per share.
"Our team continues to execute on our plan and deliver robust results. The excitement around our new products is incredible and will only grow once customers have a chance to experience it for themselves," said Nikesh Arora, chairman and CEO of Palo Alto Networks in a statement.
On Wednesday morning, Palo Alto also announced the acquisitions of container security company Twistlock for $410 million, and serverless security company PureSec for an undisclosed amount. Both deals are expected to close in the fiscal fourth quarter.
"Both Twistlock and PureSec will be important additions to helping protect our customers' journey to the cloud. Combining their capabilities with Prisma, our leading cloud security suite, is a huge win for all of our customers," Arora said in a statement.
Palo Alto Networks is a key holding in Jim Cramer's Action Alerts PLUS charitable trust.