TECH - Palo Alto's Conservative Approach Fails To Impress | Benzinga
On Monday, Palo Alto Networks (NASDAQ: PANW) shares plunged upon its fiscal third quarter report that failed to impress due to a conservative guidance. Last week, Palo Alto Networks revealed it is buying cloud security software assets from International Business Machines Corporation (NYSE: IBM) via a joint press release, also suggesting Palo Alto is in need of a power boost.
Fiscal Third Quarter Highlights
For the quarter ended on April 30th, Palo Alto reported that revenue grew 15% YoY to $1.98 billion. Net income amounted to $278.8 million, or 79 cents a share, while adjusted earnings amounted to $1.32 per share, surpassing FactSet consensus of $1.25 a share.
Fiscal fourth quarter guidance that failed to impress.
For the current quarter, Palo Alto guided for revenue in the range from $2.15 billion to $2.17 billion with billings ranging from $3.43 billion to $3.48 billion, accounting for deferred revenue.
A Narrowed Down Full Year Guidance
Palo Alto did not lift the outlook it provided in February, just narrowed it down. For the full-year, Palo Alto guided for bookings between $10.13 billion and $10.18 billion while it previously expected ...