Palo Alto Networks ( PANW) shares fell 12.2% to $47.75 after the network security provider missed earnings estimates. The company's adjusted earnings were 6 cents a share on revenue of $101.3 million for the fiscal third quarter ended April 30. Analysts were expecting profit of 5 cents a share, but on $103.5 million in revenue. UBS analyst Brent Thill lowered his price target to $55 from $61, but kept his "neutral" rating on the stock, as the company felt the impact from the sequester. "Architectural differentiation and product position in the 2 hottest areas of network security NGFW and APT is yielding growth over 5x the industry rate but could not shield PANW from sequestration impact on Federal demand and weakness in Europe ($3-4M shortfall each)," Thill wrote in his note.
Splunk ( SPLK) shares fell 3.27% to $43.74 despite the big data company raising its full-year revenue outlook and beating revenue estimates. The company, however, forecast negative second-quarter operating margins as it continues to invest heavily in data platform, content and Software-as-a-Service offerings.