Palo Alto Networks Inc (Nasdaq: PANW) is trading down in extended hours on Monday even though it came in ahead of Street estimates for its third financial quarter.
Palo Alto Networks stock down in muted guidance
Investors are concerned because PANW issued somewhat of a muted guidance for the future. The cybersecurity company forecasts its revenue to fall between $2.15 billion and $2.17 billion on up to $1.42 of per-share earnings.That was only in line with analysts at $2.16 billion and $1.41 a share, respectively. Still, Nikesh Arora – the chief executive of Palo Alto Networks said in a press release today:
We are pleased with enthusiastic response to platformization … a long-term strategy that addresses the increasing sophistication and volume of threats, and the need for AI-infused security outcomes.
The Nasdaq-listed firm ended its Q3 with $11.3 billion in remaining performance obligation – up 23% year-over-year. Palo Alto Networks stock is now up close to 15% versus its year-to-date low.
Palo Alto Networks Q3 earnings snapshot
PANW saw its adjusted operating margin sit at 26% – up 200 basis points in Q3. According to Dipak Golechha – the chief financial officer of Palo Alto Networks:
We have remained disciplined in our execution while investing in go-to-market and innovation … and look forward to executing against our strategic goals and financial targets as we close out the year.
Last month, the multinational based out of Santa Clara, California partnered with Google on AI-enabled cybersecurity as Invezz reported here.More By This Author:Robinhood Stock Price Forecast: Bank Of America Sees Upside To $24
Applied Materials Beats Q2 Estimates But Guidance Disappoints
Cisco Issues Upbeat Guidance Despite 13% Hit To Revenue In Q3
