Palo Alto Networks Falling 4% on Weak Guidance
Palo Alto Networks (PANW) is falling close to 4% this morning on weak guidance. The company beat revenues $567 million to $546 million consensus and EPS coming in at $0.99 vs. $0.95. Their billings number of $721 million came in up 33% year-over-year. The company then guided revenues to $630 million at the midpoint, above the street’s $618 million for July. EPS was then guided below the street at $1.21, coming in at $1.15 to $1.17. That could be construed as just conservative. However the billings guide came in at a midpoint of +23%, much lower than the +33% they just posted. Overall the company sounded bullish, with Kathy Bonanno the CFO saying “We drove market-leading top-line results through new customer acquisition and lifetime value expansion in the third quarter”, indicating solid uptake in cross and up-selling clients.