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Palo Alto (PANW) to Report Q1 Earnings: What's in the Cards?
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Palo Alto Networks (PANW - Free Report) is slated to report first-quarter fiscal 2022 results on Nov 18.
Palo Alto projects year-over-year revenue growth of 26-28% to $1.19-$1.21 billion. The Zacks Consensus Estimate for the same is pegged at $1.20 billion, suggesting growth of 27.2% from the year-ago reported figure.
For the first quarter, Palo Alto expects non-GAAP earnings to be $1.55-$1.58 per share. The consensus mark for the same stands at $1.57 per share, which indicates a decline of 3.09% from the year-ago quarter’s $1.62 per share.
Palo Alto’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.87%.
Amid the pandemic-induced continued remote-working wave, increased use of the cloud and remote networks has resulted in escalating cyberattacks. This has led to a rise in demand for cybersecurity solutions. Palo Alto’s fiscal first-quarter performance is likely to have benefited from this demand surge.
Palo Alto’s performance in the quarter may have gained from the strong momentum stemming from deal wins. This is likely to have boosted revenue growth. Strong demand for form factor hardware products, particularly the recently launched machine learning (“ML”) powered models that ensure zero-trust network security for organizations are expected to have contributed to the quarterly performance. However, product revenues are likely to witness low-double digits growth in the quarter to be reported.
Palo Alto has been gaining from Bridgecrew acquisition, which forms the crux of the Prisma public cloud, and Xpanse, which forms the basis of Cortex. Prisma and Cortex are likely to have continued performing well in the fiscal first quarter as well.
The growing and accelerated migration to cloud, owing to the social-distancing regulations, is likely to have boosted the adoption of the aforementioned platforms. Palo Alto projects year-over-year billings growth between 19% and 21% ($1.29 billion-$1.31 billion) during the to-be-reported quarter.
Nonetheless, higher sales incentives related to the Next-Generation Security products are likely to have impacted the fiscal first-quarter performance. Additionally, forex headwinds, and higher marketing and sales expenses might have weighed on Palo Alto’s profitability during the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Palo Alto this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Palo Alto currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Per our model, Macy’s (M - Free Report) , NVIDIA Corporation (NVDA - Free Report) and HP Inc. (HPQ - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Macy’s has a Zacks Rank #1 and an Earnings ESP of +9.77%. The company is scheduled to report third-quarter fiscal 2021 results on Nov 18. Macy's earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 269.8%.
The Zacks Consensus Estimate for Macy’s third-quarter earnings is pegged at 31 cents per share, suggesting year-over-year growth of 263.2%. The consensus mark for revenues stands at $5.29 billion, indicating a year-over-year improvement of 32.6%.
NVIDIA is slated to report third-quarter fiscal 2022 results on Nov 17. The stock has a Zacks Rank #2 and an Earnings ESP of +1.06%. NVIDIA's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.6%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.11 per share, suggesting a year-over-year improvement of 52.1%. NVIDIA’s quarterly revenues are estimated to increase 44.6% year over year to $6.83 billion.
HP currently has a Zacks Rank #3 and an Earnings ESP of +1.89%. It is scheduled to report fourth-quarter fiscal 2021 results on Nov 23. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.1%.
The Zacks Consensus Estimate for HP’s fourth-quarter earnings is pegged at 88 cents per share, suggesting year-over-year growth of 41.9%. The consensus mark for revenues stands at $15.36 billion, which suggests an improvement of 0.7% from the year-ago quarter.
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Palo Alto (PANW) to Report Q1 Earnings: What's in the Cards?
Palo Alto Networks (PANW - Free Report) is slated to report first-quarter fiscal 2022 results on Nov 18.
Palo Alto projects year-over-year revenue growth of 26-28% to $1.19-$1.21 billion. The Zacks Consensus Estimate for the same is pegged at $1.20 billion, suggesting growth of 27.2% from the year-ago reported figure.
For the first quarter, Palo Alto expects non-GAAP earnings to be $1.55-$1.58 per share. The consensus mark for the same stands at $1.57 per share, which indicates a decline of 3.09% from the year-ago quarter’s $1.62 per share.
Palo Alto’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.87%.
Palo Alto Networks Price and EPS Surprise
Palo Alto Networks price-eps-surprise | Palo Alto Networks Quote
Factors to Note
Amid the pandemic-induced continued remote-working wave, increased use of the cloud and remote networks has resulted in escalating cyberattacks. This has led to a rise in demand for cybersecurity solutions. Palo Alto’s fiscal first-quarter performance is likely to have benefited from this demand surge.
Palo Alto’s performance in the quarter may have gained from the strong momentum stemming from deal wins. This is likely to have boosted revenue growth. Strong demand for form factor hardware products, particularly the recently launched machine learning (“ML”) powered models that ensure zero-trust network security for organizations are expected to have contributed to the quarterly performance. However, product revenues are likely to witness low-double digits growth in the quarter to be reported.
Palo Alto has been gaining from Bridgecrew acquisition, which forms the crux of the Prisma public cloud, and Xpanse, which forms the basis of Cortex. Prisma and Cortex are likely to have continued performing well in the fiscal first quarter as well.
The growing and accelerated migration to cloud, owing to the social-distancing regulations, is likely to have boosted the adoption of the aforementioned platforms. Palo Alto projects year-over-year billings growth between 19% and 21% ($1.29 billion-$1.31 billion) during the to-be-reported quarter.
Nonetheless, higher sales incentives related to the Next-Generation Security products are likely to have impacted the fiscal first-quarter performance. Additionally, forex headwinds, and higher marketing and sales expenses might have weighed on Palo Alto’s profitability during the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Palo Alto this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Palo Alto currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Per our model, Macy’s (M - Free Report) , NVIDIA Corporation (NVDA - Free Report) and HP Inc. (HPQ - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Macy’s has a Zacks Rank #1 and an Earnings ESP of +9.77%. The company is scheduled to report third-quarter fiscal 2021 results on Nov 18. Macy's earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 269.8%.
The Zacks Consensus Estimate for Macy’s third-quarter earnings is pegged at 31 cents per share, suggesting year-over-year growth of 263.2%. The consensus mark for revenues stands at $5.29 billion, indicating a year-over-year improvement of 32.6%.
NVIDIA is slated to report third-quarter fiscal 2022 results on Nov 17. The stock has a Zacks Rank #2 and an Earnings ESP of +1.06%. NVIDIA's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.6%.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.11 per share, suggesting a year-over-year improvement of 52.1%. NVIDIA’s quarterly revenues are estimated to increase 44.6% year over year to $6.83 billion.
HP currently has a Zacks Rank #3 and an Earnings ESP of +1.89%. It is scheduled to report fourth-quarter fiscal 2021 results on Nov 23. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.1%.
The Zacks Consensus Estimate for HP’s fourth-quarter earnings is pegged at 88 cents per share, suggesting year-over-year growth of 41.9%. The consensus mark for revenues stands at $15.36 billion, which suggests an improvement of 0.7% from the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.