Saturday, 28 May 2016

Palo Alto Networks Shares Dive on Q4 Forecast

Palo Alto Networks’ third-quarter sales beat analysts’ estimates but the cybersecurity firm’s shares took a big hit Friday on a weaker-than-expected forecast for the current quarter.

For the quarter ended April 30, Palo Alto reported $345.8 million in sales and 42 cents earnings per share excluding items, up 48% and 83%, respectively, from a year earlier. Sales topped the consensus analysts’ estimates $339.5 million, while earnings were in line with expectations.

The company exceeded its guidance for the eighth consecutive quarter. “We continue to balance growth and profitability and once again delivered record revenue, billings and cash flow,” CFO Steffan Tomlinson said in a news release.

But Palo Alto’s forward guidance gave Wall Street cause for concern. Its shares fell 18.3% on Friday, closing at $129.86.

For the fourth quarter, Palo Alto forecast $386 million to $390 million in sales and 48 to 50 cents in earnings per share. At the midpoints, the outlook missed the consensus model for $389.3 million and 50 cents. For the full article click here 



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