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Palo Alto Networks Falls Despite Earnings Beat, Upgraded Outlook

Palo Alto Networks raised its full-year earnings and revenue estimates for fiscal 2021.
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Shares of Palo Alto Networks Inc.  (PANW)  fell after hours Monday after the company reported fiscal second quarter results.

The Santa Clara, California company reported non-GAAP net income of $1.55 per share on revenue that rose 25% year-over-year to $1.02 billion. Analysts were expecting earnings of $1.43 per share on revenue of $985.681 million.

"The momentum in the business continues to be strong, with second quarter revenue growth of 25% year over year to over 1 billion USD, driven by strong execution across the board," CEO Nikesh Arora said.

For the third quarter, the company expects total billings to range between $1.22 billion and $1.24 billion with revenue ranging between $1.05 billion and $1.06 billion and non-GAAP earnings between $1.27 and $1.29 per share. Analysts are expecting revenue of $1.05 billion with earnings of $1.28 per share. 

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The cybersecurity company also raised its guidance for fiscal 2021 with total revenue now expected to be between $4.15 billion and $4.2 billion. The company's previous forecast called for revenue between $4.09 billion and $4.14 billion. 

Diluted non-GAAP net income is now expected to be between $5.80 and $5.90 per share, also up from its previous forecast of between $5.70 and $5.80 per share. 

Analysts expect 2021 adjusted net income of $5.81 per share on revenue of $4.12 billion, according to Yahoo Finance.

"Events like the SolarStorm attack highlight the importance of cybersecurity, and Palo Alto Networks is well positioned to protect our customers with best-of-breed solutions," Arora said.

Palo Alto Networks was down 3.7% to $370.25 after closing Monday's session down 3.1% to $384.61.