We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Palo Alto Networks Q4 Preview: Can the Earnings Streak Continue?
Read MoreHide Full Article
The Zacks Computer and Technology Sector has soared over the last month, tacking on nearly 13% in value and marginally outperforming the S&P 500. Still, the sector is down a sizable 20% year-to-date.
A widely-recognized company in the sector, Palo Alto Networks (PANW - Free Report) is on deck to unveil Q4 results on Monday, August 22nd, after the market close.
Palo Alto Networks offers network security solutions to enterprises, service providers, and government entities worldwide.
Currently, the company sports a Zacks Rank #2 (Buy) with an overall VGM Score of a C. How does the company stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Palo Alto Networks shares have displayed a valuable layer of relative strength in 2022, declining 7% and outperforming the general market.
Image Source: Zacks Investment Research
However, over the last month, PANW shares have lagged the S&P 500’s gain of 8%, increasing by 2.5% in value.
Image Source: Zacks Investment Research
PANW shares trade at steep valuation multiples, further displayed by its Style Score of a D for Value.
The company’s 7.6X forward price-to-sales ratio is undoubtedly on the high side, above its five-year median of 7.4X and representing a steep 158% premium relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
One analyst has upped their earnings outlook for the quarter to be reported over the last 60 days. In addition, the Zacks Consensus EPS Estimate of $2.28 reflects a sizable 42% year-over-year uptick in quarterly earnings.
Image Source: Zacks Investment Research
The company’s top-line appears to be in remarkable shape as well – PANW is forecasted to have generated $1.5 billion in revenue throughout the quarter, good enough for a notable 27% Y/Y uptick.
Quarterly Performance & Market Reactions
PANW has been on a blazing hot earnings streak, exceeding the Zacks Consensus EPS Estimate in each of its previous 23 quarters. Just in its latest print, the company posted a 7% bottom-line beat.
Top-line results have also been remarkable – PANW has chained together nine consecutive top-line beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the market has liked what it’s seen from the company as of late, with shares moving upwards following three of its last four quarterly prints.
Putting Everything Together
PANW shares have provided great relative strength year-to-date, but over the last month, shares have lagged the general market.
The company’s shares trade at steep valuation multiples, above their five-year median and nowhere near their Zacks Sector average.
One analyst has upped their quarterly outlook, and quarterly estimates reflect solid growth within both the top and bottom-line.
Furthermore, PANW has consistently reported quarterly results above estimates, and the market has reacted well following the company’s report as of late.
Heading into the print, Palo Alto Networks (PANW - Free Report) carries a Zacks Rank #2 (Buy) with an Earnings ESP Score of 0.1%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Palo Alto Networks Q4 Preview: Can the Earnings Streak Continue?
The Zacks Computer and Technology Sector has soared over the last month, tacking on nearly 13% in value and marginally outperforming the S&P 500. Still, the sector is down a sizable 20% year-to-date.
A widely-recognized company in the sector, Palo Alto Networks (PANW - Free Report) is on deck to unveil Q4 results on Monday, August 22nd, after the market close.
Palo Alto Networks offers network security solutions to enterprises, service providers, and government entities worldwide.
Currently, the company sports a Zacks Rank #2 (Buy) with an overall VGM Score of a C. How does the company stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Palo Alto Networks shares have displayed a valuable layer of relative strength in 2022, declining 7% and outperforming the general market.
Image Source: Zacks Investment Research
However, over the last month, PANW shares have lagged the S&P 500’s gain of 8%, increasing by 2.5% in value.
Image Source: Zacks Investment Research
PANW shares trade at steep valuation multiples, further displayed by its Style Score of a D for Value.
The company’s 7.6X forward price-to-sales ratio is undoubtedly on the high side, above its five-year median of 7.4X and representing a steep 158% premium relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
One analyst has upped their earnings outlook for the quarter to be reported over the last 60 days. In addition, the Zacks Consensus EPS Estimate of $2.28 reflects a sizable 42% year-over-year uptick in quarterly earnings.
Image Source: Zacks Investment Research
The company’s top-line appears to be in remarkable shape as well – PANW is forecasted to have generated $1.5 billion in revenue throughout the quarter, good enough for a notable 27% Y/Y uptick.
Quarterly Performance & Market Reactions
PANW has been on a blazing hot earnings streak, exceeding the Zacks Consensus EPS Estimate in each of its previous 23 quarters. Just in its latest print, the company posted a 7% bottom-line beat.
Top-line results have also been remarkable – PANW has chained together nine consecutive top-line beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the market has liked what it’s seen from the company as of late, with shares moving upwards following three of its last four quarterly prints.
Putting Everything Together
PANW shares have provided great relative strength year-to-date, but over the last month, shares have lagged the general market.
The company’s shares trade at steep valuation multiples, above their five-year median and nowhere near their Zacks Sector average.
One analyst has upped their quarterly outlook, and quarterly estimates reflect solid growth within both the top and bottom-line.
Furthermore, PANW has consistently reported quarterly results above estimates, and the market has reacted well following the company’s report as of late.
Heading into the print, Palo Alto Networks (PANW - Free Report) carries a Zacks Rank #2 (Buy) with an Earnings ESP Score of 0.1%.