Palo Alto Networks Inc (Nasdaq: ) is trading down in extended hours even though its reported market-beating results for its fiscal second quarter.
Why is Palo Alto Networks stock down in after-hours?
The stock is being punished primarily on muted guidance. Palo Alto Networks lowered its outlook for full-year billings to $10.1 billion to $10.2 billion on Tuesday.Its forecast for up to $8.0 billion in revenue in fiscal 2024 also came in shy of analysts at $8.19 billion. Still, Nikesh Arora – the chief executive of Palo Alto Networks said in a today:
“Our leadership across all of our three platforms and growing cross-platform adoption puts us in a strong and unique position. We are activating our accelerated platformization and consolidation strategy, as well as our AI leadership strategy.”
Guidance that $PANW issued for its current fiscal quarter this evening also fell short of Street estimates. The cybersecurity stock has more than doubled over the trailing twelve months.
Palo Alto Networks Q2 earnings snapshot
$PANW said its adjusted operating margin stood at 29% – up 580 basis points in Q2. According to CFO Dipak Golechha:Disciplined execution on profitable growth gives us confidence to maintain EPS and free cash flow guidance, while making additional investments in platformization and consolidation strategies to accelerate our long-term growth trajectory.
Now live from stage, “AI can be used for good or can be used for bad, it’s about the actor” Inma Martinez at #IgniteYourSecurity event in Riyadh. pic.twitter.com/88TrOmBXTV
— Palo Alto Networks EMEA (@PaloAltoNetEMEA) February 12, 2024
More By This Author:
