Categories Earnings, Technology

Palo Alto Networks (NYSE: PANW) Q1 profit beats estimates, but guides Q2 below view

Palo Alto Networks Inc. (NYSE: PANW) slipped to a loss in the first quarter of 2020 from a profit last year, due to higher costs and expenses. Despite the results exceeding analysts’ expectations, the company guided second-quarter earnings below consensus estimates.

Net loss was $59.6 million or $0.62 per share compared to a loss of $38.3 million or $0.41 per share in the previous year quarter. Adjusted earnings decreased by 10% to $1.05 per share. Revenue jumped by 18% to $771.9 million. This was driven by an 18% jump in the total billings to $897.4 million.

Read: Pure Storage Q3 earnings snapshot

Looking ahead into the second quarter, the company expects billings to grow by 16-17% to the range of $985 million to $1 billion, and revenue to increase by 18-19% to $838-848 million. Adjusted earnings are anticipated to be in the range of $1.11 to $1.13 per share for the second quarter.

For fiscal 2020, Palo Alto predicts billings to grow by 18-19% to the range of $4.105-4.165 billion and revenue to rise by 19-20% to the range of $3.44-3.48 billion. Adjusted earnings are anticipated to be in the range of $4.90 to $5.00 per share.

In a separate release, Palo Alto said it agreed to buy Aporeto Inc., a machine identity-based micro-segmentation company. Under the terms of the agreement, the company will pay about $150 million in cash to acquire Aporeto. The acquisition is expected to close during Palo Alto Networks fiscal second quarter.

Read: Analog Devices Q4 earnings preview

The proposed acquisition of Aporeto will further strengthen the company’s Cloud Native Security Platform delivered by Prisma Cloud. Aporeto identifies workloads and applies micro-segmentation across all infrastructures, helping customers secure their applications at scale.

Also, the company expects the proposed acquisition to further extend its leadership in cloud security. The company’s Next-Gen Security offerings performed extremely well in its first quarter, bolstering its confidence in long-term prospects for Prisma and Cortex.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Macy’s (M), Target (TGT), Dollar Tree (DLTR): Major retailers and a costly holiday season

The holiday season has started and it is the time for cheer but this year inflation is proving to be a major spoilsport for the festivities. As customers struggle to

Here’s a look at Dollar Tree’s (DLTR) expectations for the remainder of the year

Shares of Dollar Tree Inc. (NASDAQ: DLTR) were down over 1% on Wednesday, a day after the company reported earnings results for the third quarter of 2022. Revenue and earnings

Target Corporation (TGT): A look at how the retail giant is shaping up against an inflationary backdrop

Shares of Target Corporation (NYSE: TGT) were up over 1% on Wednesday. The stock has dropped 30% year-to-date and 35% over the past 12 months. Last week the company reported

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top