Palo Alto Networks Earnings: PANW Stock Dives 14% on Q2 Revenue Miss
PANW also has a weak outlook for 2020
Palo Alto Networks (NYSE:) earnings for the cybersecurity company's fiscal second quarter of 2020 have PANW stock falling hard after-hours Monday. This comes after reporting adjusted earnings per share of $1.19. That's better than Wall Street's estimate of $1.12 per share. Unfortunately, its revenue of $816.70 million is nowhere close to analysts' estimates of $843.26 million.
Here are some additional highlights from the most recent Palo Alto Networks earnings report.
- Adjusted per-share earnings are down 21.19% from $1.51 in the fiscal second quarter of 2019.
- Revenue for the quarter comes in 14.83% higher than the $711.20 million from the same time last year.
- Operating loss of -$52.90 million is a switch from operating income of $6.60 million in fiscal Q2 of the previous year.
- The Palo Alto Networks earnings report also has net loss coming in at -$73.70.
- That's a 2,734.62% wider net loss than the -$2.60 million reported in the same period of the year prior.
Nikesh Arora, Chairman and CEO of Palo Alto Networks, has this to say about the PANW stock earnings.
"Fiscal second quarter revenue was below our expectations primarily as a result of continued impact of sales incentives related to our Next-Generation Security products from our prior fiscal year. We have made progress to address this and have implemented several go-to-market programs to reignite our firewall sales growth."
The Palo Alto Networks earnings report also includes its fiscal 2020 outlook. This has it expecting adjusted EPS of $4.55 to $4.65 on revenue of $3.35 to $3.39 billion. Wall Street's estimates are for EPS of $4.96 on revenue of $3.47 billion.
PANW stock was down 14.04% after markets closed on Monday.As of this writing, William White did not hold a position in any of the aforementioned securities.
Article printed from InvestorPlace Media, https://investorplace.com/2020/02/palo-alto-networks-earnings-hammer-panw-stock/.
©2020 InvestorPlace Media, LLC
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