Palo Alto Networks Inc. (NYSE: PANW) reported its fiscal second-quarter financial results after the markets closed on Monday. Even though investors treated this as a fairly dismal report, analysts were not completely sold on the idea. In fact, a few still maintain there is solid upside for this cybersecurity firm despite these recent pullbacks.
24/7 Wall St. has included some brief highlights from the earnings report, as well as what a few analysts are saying about Palo Alto Networks after the fact.
The cybersecurity firm said that it had $1.19 in earnings per share (EPS) and $816.7 million in revenue. This compares with what analysts were calling for: $1.12 in EPS and $843.26 million in revenue. The same period of last year reportedly had $1.51 in EPS and $711.2 million in revenue.
Overall revenues grew 15% year over year. Product revenues decreased 9.2% to $246.5 million, while subscription and support revenues grew 29.7% to $570.2 million.
During the quarter, billings grew 17% year over year to $998.9 million. Deferred revenue increased 27% year over year to $3.2 billion.
Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.96 to $0.98 and revenue between $835 million and $850 million. Analysts are calling for $1.25 in EPS and $873.08 million in revenue for the quarter.
Here’s what analysts had to say:
- Wedbush maintained its Outperform rating but trimmed its target price to $240 from $275.
- Mizuho maintained a Buy rating but lowered its price target to $245 from $265.
- RBC Capital Markets downgraded it to Sector Perform from Outperform and lowered its target to $235 from $280.
- JPMorgan downgraded it to Neutral from Overweight and cut its target to $235 from $285.
- Merrill Lynch reiterated its Neutral rating and lowered its price objective to $240 from $265.
- BMO cut it to a Market Perform rating from Outperform and lowered its target to $220 from $248.
- Deutsche Bank downgraded it to Hold from Buy and lowered its price target to $210 from $275.
Palo Alto Networks stock traded down 15% to $201.11 on Tuesday, in a 52-week range of $192.17 to $260.63. The consensus price target is $265.23.
ALSO READ: Jabil Reports Coronavirus Impact on Factories (Amazon, Apple, Cisco, HP, Ericsson, Nokia)
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
