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Cybersecurity provider Palo Alto Networks (NASDAQ:PANW) will be reporting earnings tomorrow afternoon. Here's what to expect.
Palo Alto Networks met analysts' revenue expectations last quarter, reporting revenues of $1.98 billion, up 19.3% year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' billings estimates.
Is Palo Alto Networks a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Palo Alto Networks's revenue to grow 14.3% year on year to $1.97 billion, slowing from the 24.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.25 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Palo Alto Networks has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.7% on average.
Looking at Palo Alto Networks's peers in the cybersecurity segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 6.2%, meeting analysts' expectations, and Tenable reported revenues up 14.4%, topping estimates by 1.2%. Varonis's stock price was unchanged after the results, and Tenable's price followed a similar reaction.
Read our full analysis of Varonis's results here and Tenable's results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 6.1% on average over the last month. Palo Alto Networks is up 13.1% during the same time and is heading into earnings with an average analyst price target of $335.5 (compared to the current share price of $318.7).
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