Palo Alto Networks Inc (NYSE:PANW) Expected to Announce Earnings of $1.42 Per Share

Wall Street brokerages expect Palo Alto Networks Inc (NYSE:PANW) to post $1.42 earnings per share (EPS) for the current quarter, Zacks Investment Research reports. Fourteen analysts have issued estimates for Palo Alto Networks’ earnings. The lowest EPS estimate is $1.40 and the highest is $1.44. Palo Alto Networks posted earnings per share of $1.28 in the same quarter last year, which would indicate a positive year-over-year growth rate of 10.9%. The company is scheduled to announce its next earnings results after the market closes on Wednesday, September 4th.

On average, analysts expect that Palo Alto Networks will report full-year earnings of $5.40 per share for the current financial year, with EPS estimates ranging from $5.38 to $5.42. For the next fiscal year, analysts anticipate that the company will post earnings of $6.25 per share, with EPS estimates ranging from $5.77 to $6.79. Zacks Investment Research’s EPS calculations are an average based on a survey of sell-side research firms that cover Palo Alto Networks.

Palo Alto Networks (NYSE:PANW) last posted its earnings results on Wednesday, May 29th. The network technology company reported $0.11 EPS for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.06). Palo Alto Networks had a positive return on equity of 5.42% and a negative net margin of 2.30%. The firm had revenue of $726.60 million for the quarter, compared to analyst estimates of $704.89 million. During the same period in the previous year, the firm posted $0.99 earnings per share. The company’s revenue for the quarter was up 28.0% on a year-over-year basis.

A number of analysts recently issued reports on the stock. JPMorgan Chase & Co. dropped their price target on shares of Palo Alto Networks from $293.00 to $270.00 and set an “overweight” rating for the company in a research note on Thursday, May 30th. JMP Securities dropped their price target on shares of Palo Alto Networks from $270.00 to $250.00 and set a “market outperform” rating for the company in a research note on Thursday, May 30th. ValuEngine lowered shares of Palo Alto Networks from a “buy” rating to a “hold” rating in a research note on Saturday, June 22nd. Raymond James dropped their price target on shares of Palo Alto Networks from $270.00 to $260.00 and set an “outperform” rating for the company in a research note on Thursday, May 30th. Finally, Credit Suisse Group dropped their price target on shares of Palo Alto Networks from $190.00 to $185.00 and set an “underperform” rating for the company in a research note on Thursday, May 30th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, twenty-six have given a buy rating and one has issued a strong buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $263.03.

Shares of NYSE:PANW traded down $15.34 during midday trading on Friday, reaching $199.27. The company had a trading volume of 4,971,900 shares, compared to its average volume of 884,411. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.86 and a quick ratio of 1.86. The stock’s fifty day moving average price is $217.08 and its 200-day moving average price is $225.56. The stock has a market capitalization of $20.60 billion, a P/E ratio of -362.31, a PEG ratio of 7.29 and a beta of 0.90. Palo Alto Networks has a one year low of $160.08 and a one year high of $260.63.

In other news, CFO Kathleen Bonanno sold 7,210 shares of the company’s stock in a transaction dated Friday, May 31st. The shares were sold at an average price of $200.00, for a total transaction of $1,442,000.00. Following the completion of the transaction, the chief financial officer now owns 31,796 shares in the company, valued at $6,359,200. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Nir Zuk sold 12,000 shares of the company’s stock in a transaction dated Thursday, August 1st. The stock was sold at an average price of $226.80, for a total transaction of $2,721,600.00. Following the transaction, the executive vice president now owns 926,861 shares of the company’s stock, valued at approximately $210,212,074.80. The disclosure for this sale can be found here. In the last quarter, insiders have sold 186,092 shares of company stock valued at $39,067,840. 3.10% of the stock is owned by insiders.

Several institutional investors have recently added to or reduced their stakes in the company. Comerica Securities Inc. lifted its stake in Palo Alto Networks by 3.5% in the fourth quarter. Comerica Securities Inc. now owns 3,103 shares of the network technology company’s stock worth $584,000 after purchasing an additional 105 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Palo Alto Networks by 4.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 103,149 shares of the network technology company’s stock worth $19,425,000 after purchasing an additional 4,496 shares during the last quarter. Geode Capital Management LLC lifted its stake in Palo Alto Networks by 4.1% in the fourth quarter. Geode Capital Management LLC now owns 810,984 shares of the network technology company’s stock worth $152,637,000 after purchasing an additional 32,284 shares during the last quarter. FMR LLC lifted its stake in Palo Alto Networks by 424.2% in the fourth quarter. FMR LLC now owns 326,709 shares of the network technology company’s stock worth $61,536,000 after purchasing an additional 264,384 shares during the last quarter. Finally, Legacy Advisors LLC bought a new stake in Palo Alto Networks in the first quarter worth about $61,000. Institutional investors and hedge funds own 79.51% of the company’s stock.

Palo Alto Networks Company Profile

Palo Alto Networks, Inc provides security platform solutions worldwide. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances deployed on an end-customer's network as a virtual or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances.

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