Palo Alto Networks Inc Earnings: Here’s Why the Stock is Up Now

Palo Alto Networks Inc (NYSE:PANW) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 5.15%.

Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 50% to $0.06 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Rose 48.6% to $112.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Palo Alto Networks Inc reported adjusted EPS income of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.07. It missed the average revenue estimate of $118.8 million.

Quoting Management: “Demand was strong in the fourth quarter across all theaters and verticals resulting in 11 percent sequential revenue growth and 49 percent year-over-year growth,” said Mark McLaughlin, president and chief executive officer of Palo Alto Networks. “In fiscal 2013, we grew revenue by 55 percent and added over 4,800 customers as Palo Alto Networks continues to significantly outpace the competition and cement its position as the global leader in next generation security.”

Key Stats (on next page)…

Revenue increased 10.97% from $101.29 million in the previous quarter. EPS increased 0% from $0.06 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.09 and has not changed. For the current year, the average estimate is a profit of $0.4, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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