Palo Alto Networks Falls Despite Earnings Beat, Upgraded Outlook
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.
