NEW YORK (TheStreet) -- Shares of Palo Alto Networks (PANW) - Get Report are plunging by 8.29% to $136 in after-hours trading on Thursday, after issuing disappointing guidance for the 2016 fourth quarter. 

The security company expects to report adjusted earnings between 48 cents and 50 cents per share on revenue between $386 million and $390 million.

Wall Street is looking for earnings of 50 cents per share on revenue of $389 million for the quarter.

The downbeat outlook is overshadowing in-line 2016 third quarter earnings and better-than-expected revenue and billings. 

Palo Alto Networks reported adjusted earnings of 42 cents per share, which met analysts' expectations. Revenue soared 48% year-over-year to $345.8 million in the most recent period, topping analysts' estimates for $339.5 million.

Billings rose by 61% year-over-year to $486.2 million. Analysts had forecast for $460 million, according to Barron's. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Palo Alto's weaknesses include its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: PANW

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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