Nikesh
Arora,
Palo
Alto
Networks
Adam
Galica
|
CNBC
Shares
of
cybersecurity
company
Palo
Alto
Networks
plunged
19%
in
extended
trading
Tuesday,
after
the
company
reported
a
beat
on
the
top
and
bottom
lines
but
lowered
its
full-year
guidance
for
revenue
and
billings.
Here’s
how
the
company
did
compared
to
LSEG,
formerly
Refinitiv,
estimates:
-
Earnings
per
share:
$1.46,
adjusted,
vs.
$1.30
expected -
Revenue:
$1.98
billion
vs.
$1.97
billion
expected
Net
income
was
$1.7
billion
for
the
quarter,
or
$4.89
per
share,
compared
to
$84
million,
or
$0.25
share,
for
the
fiscal
second
quarter
2023.
The
company
is
now
guiding
to
full-year
total
billings
between
$10.1
and
$10.2
billion,
compared
to
its
previous
guidance
of
$10.7
and
$10.8
billion.
Palo
Alto
Networks
also
expects
full-year
revenue
to
range
between
$7.95
to
$8
billion,
compared
to
its
prior
guidance
of
$8.15
to
$8.2
billion.
In
a
conference
call
with
analysts,
CEO
Nikesh
Arora
said
the
lowered
guidance
was
due
to
a
“shift”
in
strategy,
“wanting
to
accelerate
growth,
our
platform
migration
and
consolidation
and
activating
AI
leadership,”
adding
that
the
company
expected
“a
difficult
customer”
as
the
company
shifted
stance.
Guidance
for
the
upcoming
quarter
also
fell
short
of
consensus
estimates.
Analysts
surveyed
by
LSEG
expected
the
company
to
guide
to
fiscal
third-quarter
revenue
of
$2.04
billion,
but
Palo
Alto
Networks
now
expects
revenue
to
range
between
$1.95
billion
and
$1.98
billion.
The
new
billings
guidance
represents
full-year
growth
of
between
10%
and
11%
versus
previous
guidance
showing
16%
to
17%
billings
growth.
Similarly,
Palo
Alto
Networks
now
expects
full-year
revenue
growth
between
15%
and
16%,
down
from
initial
guidance
showing
18%
to
19%
growth.
The
lowered
estimates
come
even
as
the
AI
frenzy
sweeps
up
cybersecurity
stocks
and
the
broader
technology
sector.
Arora
said
that
the
company
would
look
to
activate
its
“AI
leadership
strategy”
in
the
earnings
release.
This
is
breaking
news.
Please
check
back
for
updates.
