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.
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.
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.
Most Popular
PNC Earnings: A snapshot of PNC Financial Services’ Q4 2025 results
PNC Financial Services Group, Inc. (NYSE: PNC) on Friday reported higher revenue and net income for the fourth quarter of fiscal 2025. The numbers also beat analysts' estimates. Total revenues
Earnings Preview: Intuitive Surgical (ISRG) looks poised for a strong Q4
Intuitive Surgical, Inc. (NASDAQ: ISRG) is a pioneer in robotic-assisted surgical technology, developing advanced systems that enable healthcare professionals to perform minimally invasive procedures with greater precision and efficiency. Having
What to expect when Alaska Air Group (ALK) reports Q4 2025 earnings results
Shares of Alaska Air Group (NYSE: ALK) gained 3% on Thursday. The stock has dropped 26% in the past 12 months. The airline is scheduled to publish its earnings results
Comments
Comments are closed.