Technology
Why Analysts Changed Views on Palo Alto and Splunk
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Palo Alto Networks Inc. (NYSE: PANW) and Splunk Inc. (NASDAQ: SPLK) may not be in the exact same businesses, but what they have in common is that they both were up handily after earnings on Thursday. They also saw big changes in their analyst ratings and targets.
Palo Alto Networks is one of the new leaders in enterprise security for companies and enterprise clients. Splunk enables real-time operational intelligence in the United States and internationally. The company’s products enable users to collect, index, search, explore, monitor and analyze data regardless of format or source users.
Shares of Palo Alto initially popped higher on the leaked earnings report, but then shares were halted. The company said it had $0.40 in earnings per share (EPS) on $334.7 million in revenue, which compares to Thomson Reuters consensus estimates of $0.39 in EPS on $318.32 million in revenue. The same period from last year had EPS of $0.19 and revenue $217.66 million.
In terms of the outlook for the fiscal third quarter, Palo Alto expects EPS to be in a range of $0.41 to $0.42 and revenue to be between $335 million and $339 million, representing year-over-year growth of 43% to 45%. The consensus estimates call for $0.45 in EPS on $334.64 million in revenue.
Splunk reported its fiscal fourth-quarter financial results as $0.11 in EPS on $220 million in revenue. Consensus estimates were EPS at $0.08 and $202.7 million in revenue.
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