Cybersecurity platform provider Palo Alto Networks (NASDAQ: PANW) will be reporting results this Tuesday after market close. Here’s what to expect.
Palo Alto Networks met analysts’ revenue expectations last quarter, reporting revenues of $2.59 billion, up 14.9% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Palo Alto Networks a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Palo Alto Networks’s revenue to grow 28.6% year on year, improving from the 15.3% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Palo Alto Networks has a history of exceeding Wall Street’s expectations.
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. Zscaler delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 1.8%, and Varonis Systems reported revenues up 26.9%, topping estimates by 4.6%. Zscaler traded down 31.5% following the results while Varonis Systems was up 7.3%.
Read our full analysis of Zscaler’s results here and Varonis Systems’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 9% on average over the last month. Palo Alto Networks is up 52.4% during the same time and is heading into earnings with an average analyst price target of $232.86 (compared to the current share price of $281.25).
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