Palo Alto Shares Slip After-Hours as Company's Outlook Fails to Wow Investors
$Palo Alto Networks (PANW.US)$ shares slipped in extended trading after the company failed to deliver an outlook that blew past analysts' estimates.
The company forecast second quarter adjusted earnings to reach $1.54 to $1.56 a share in its fiscal second quarter, the midpoint of which is just in line with the $1.55 adjusted earnings expected by analysts, estimates compiled by Bloomberg show. Revenue was seen reaching $2.22 billion to $2.25 billion, compared with the average estimate of $2.23 billion.
Shares slipped even after the company's fiscal first quarter results beat estimates and CEO Nikesh Arora touted expectations of a multiyear trend in the field of artificial intelligence. Neither did its announcement for a stock split fail to arrest the decline for the stock that's already jumped 33% this year.
"We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes," Arora said in the company's earnings release. "I expect this will be a multiyear trend for which we are best positioned to deliver to our customers."
"We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes," Arora said in the company's earnings release. "I expect this will be a multiyear trend for which we are best positioned to deliver to our customers."
The company said its board approved a two-for-one forward stock split of the company's outstanding shares. Each stockholder will receive an additional share for every share held as of Dec. 12. Trading on a split-adjusted basis will begin on Dec. 16, it said.
For the three months ended Oct. 31, the company reported adjusted EPS of $1.56, surpassing the $1.48 expected by analysts Bloomberg. Revenue reached $2.14, better than the $2.12 billion consensus.
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Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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