Categories Earnings, Technology

Palo Alto Networks (PANW) Q1 earnings preview: Billings to dominate amid costs threat

Cybersecurity firm Palo Alto Networks Inc. (NYSE: PANW) is set to release its first-quarter 2020 earnings results on Monday, November 25, after the market closes. The top line will be benefited by billings growth, which is likely to soar above the billion-mark.

However, the bottom line will be impacted by the costs and expenses that will be incurred due to its investments in the research and development of new hardware and software development. The hardware and software are both critical in expanding its leadership in the enterprise security market. The rapidly changing applications and threat landscape will allow the company to focus on research.

Read: Sonos Q4 earnings snapshot

The company relies on new offerings such as cloud security, artificial intelligence, and analytics offerings for future success. However, the market for enterprise security products is intensely competitive that is likely to increase in the future from established competitors and new market entrants.

Analysts expect the company’s earnings to drop by 12% to $1.03 per share while revenue will jump by 17% to $767.86 million for the first quarter. The company has surprised investors by beating analysts’ expectations in all of the past four quarters. The majority of the analysts recommended a “buy” rating with an average price target of $264.14.

Read: Nuance Communications Q4 earnings snapshot

For the fourth quarter, Palo Alto slipped to a loss from a profit last year, due to higher costs and expenses. The top-line growth was driven by a 22% jump in the total billings that crossed the billion-mark for the first time. The company achieved about 180% year-over-year growth in its newer Prisma and Cortex offerings.

Also Read:  Adobe Inc. (ADBE) Q3 2020 Earnings Call Transcript

For the first quarter, the company expects billings growth of 15% to 17% year-over-year and revenue growth of 16% to 17%. Adjusted earnings are anticipated to be $1.02 to $1.04 per share for the first quarter. For fiscal 2020, Palo Alto predicts billings growth of 17% to 19%, revenue growth of 19% to 20%, and adjusted earnings of $5.00 to $5.10 per share.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Infographic: How Cintas (CTAS) performed in Q1 2021

Cintas Corporation (NASDAQ: CTAS) reported first quarter 2021 earnings results today. Revenue was $1.75 billion, down 3.6% year-over-year.  Net income rose 19% to $300 million, or $2.78 per share, from

General Mills Q1 results top Wall Street expectations: Infographic

General Mills (NYSE: GIS) reported first-quarter 2020 financial results before the opening bell on Wednesday. The company reported a 9% increase in Q1 revenues to $4.36 billion, beating the Wall

JinkoSolar (JKS) Q2 Earnings: Key financials and quarterly highlights

JinkoSolar Holding Co., Ltd. (NYSE: JKS) reported second quarter 2020 earnings results today. Total revenues increased 22.2% year-over-year to RMB8.45 billion ($1.20 billion), exceeding the company’s guidance of $1.10 billion to $1.18 billion. The growth was

One thought on “Palo Alto Networks (PANW) Q1 earnings preview: Billings to dominate amid costs threat

Comments are closed.

Top