The Santa Clara-based cyber security solutions provider reported second quarter earnings of $1.19 per share on revenue of $816.7 million. Analysts were expecting the company to report earnings of $1.12 per share on revenue of $843.26 million.
Palo Alto shares were falling more than 13% to $206 after hours Monday.
The revenue miss came despite a 15% year over year increase in top-line results .
"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,” said CEO Nikesh Arora.
Meanwhile, the company also forecast third quarter revenue between $835 million and $850 million, representing year over year growth between 15% and 17%. Analysts are expecting the company to report revenue of $873 million in the quarter.
The company’s soft revenue outlook continues throughout the full fiscal year, with the company estimating fiscal 2020 revenue between $3.35 billion and $3.39 billion, a 16% to 17% year over year increase. Analysts are expecting the company to report revenue of $3.47 billion for the year.
The stock has dropped more than 4% over the past five sessions, including a more than 2.4% decline in trading Monday. Year to date, the stock was up 2.5% heading into earnings.