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Palo Alto (PANW) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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Palo Alto Networks (PANW - Free Report) reported $1.98 billion in revenue for the quarter ended April 2024, representing a year-over-year increase of 15.3%. EPS of $1.32 for the same period compares to $1.10 a year ago.
The reported revenue represents a surprise of +0.91% over the Zacks Consensus Estimate of $1.97 billion. With the consensus EPS estimate being $1.25, the EPS surprise was +5.60%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Billings: $2.33 billion versus the nine-analyst average estimate of $2.33 billion.
RPO (Remaining Performance Obligation): $11.3 billion versus $11.09 billion estimated by three analysts on average.
Revenue- Product: $391 million versus $387.62 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
Revenue- Subscription and support: $1.59 billion compared to the $1.58 billion average estimate based on 12 analysts. The reported number represents a change of +19.6% year over year.
Revenue- Subscription and support- Support: $548.20 million versus the two-analyst average estimate of $559.67 million. The reported number represents a year-over-year change of +10.8%.
Revenue- Subscription and support- Subscription: $1.05 billion versus $1.03 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +24.8% change.
Subscription and support gross profit Non-?GAAP: $1.22 billion versus the 10-analyst average estimate of $1.22 billion.
Product gross profit Non-GAAP: $316.60 million compared to the $297.60 million average estimate based on 10 analysts.
Shares of Palo Alto have returned +14.5% over the past month versus the Zacks S&P 500 composite's +5.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Palo Alto (PANW) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Palo Alto Networks (PANW - Free Report) reported $1.98 billion in revenue for the quarter ended April 2024, representing a year-over-year increase of 15.3%. EPS of $1.32 for the same period compares to $1.10 a year ago.
The reported revenue represents a surprise of +0.91% over the Zacks Consensus Estimate of $1.97 billion. With the consensus EPS estimate being $1.25, the EPS surprise was +5.60%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Billings: $2.33 billion versus the nine-analyst average estimate of $2.33 billion.
- RPO (Remaining Performance Obligation): $11.3 billion versus $11.09 billion estimated by three analysts on average.
- Revenue- Product: $391 million versus $387.62 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
- Revenue- Subscription and support: $1.59 billion compared to the $1.58 billion average estimate based on 12 analysts. The reported number represents a change of +19.6% year over year.
- Revenue- Subscription and support- Support: $548.20 million versus the two-analyst average estimate of $559.67 million. The reported number represents a year-over-year change of +10.8%.
- Revenue- Subscription and support- Subscription: $1.05 billion versus $1.03 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +24.8% change.
- Subscription and support gross profit Non-?GAAP: $1.22 billion versus the 10-analyst average estimate of $1.22 billion.
- Product gross profit Non-GAAP: $316.60 million compared to the $297.60 million average estimate based on 10 analysts.
View all Key Company Metrics for Palo Alto here>>>Shares of Palo Alto have returned +14.5% over the past month versus the Zacks S&P 500 composite's +5.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.