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Palo Alto projects its fiscal second-quarter revenues in the range of $1.955-$1.985 billion, suggesting a year-over-year increase of 18-20%. The Zacks Consensus Estimate is pegged at $1.97 billion, implying growth of 19.1% from the year-ago reported figure.
For the fiscal second quarter, the company expects non-GAAP earnings in the range of $1.29-$1.31 per share. The Zacks Consensus Estimate for PANW’s non-GAAP earnings is pegged at $1.30 per share, indicating an increase of 23.8% from the year-ago quarter’s earnings of $1.05.
Palo Alto’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 22.2%.
Let’s see how things are shaping up for this announcement.
Palo Alto’s second-quarter performance is likely to have benefited from the strong momentum stemming from deal wins, which is expected to have boosted its top line. The strong demand for form factor hardware products, particularly machine learning-powered models that ensure zero-trust network security for organizations, is expected to have contributed to the quarterly performance.
The growing and accelerated migration to the cloud in a post-pandemic era is likely to have boosted the adoption of the aforementioned platforms. The company projects year-over-year billings growth between 15% and 18% ($2.335-$2.385 billion) in the to-be-reported quarter.
Moreover, the increased use of the cloud and remote networks in a hybrid working environment has resulted in escalating cyberattacks. This is leading to a rise in the demand for cybersecurity solutions. PANW’s fiscal second-quarter performance is likely to have benefited from this demand surge.
Palo Alto has been gaining from the Bridgecrew acquisition, which forms the crux of the Prisma public cloud and Xpanse, which encompasses the basis of Cortex. Prisma and Cortex are likely to have continued performing well in the fiscal second quarter as well.
Federal Risk and Authorization Management Program (FedRAMP) recognitions are boosting the adoption of Palo Alto’s products by government organizations. The company’s Prisma Access, Cortex XDR, Cortex Data Lake, Prisma Cloud and WildFire received FedRAMP recognitions.
This FedRAMP recognition reflects the U.S. public sector’s trust in PANW’s IoT security solutions. This is anticipated to have encouraged the adoption of its products during the period in discussion.
Higher software mix, normalization in the supply-chain environment and efficiencies in customer support are anticipated to have aided the gross margin in the to-be-reported quarter. Additionally, better cost management is expected to have driven the second-quarter bottom line.
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 a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though PANW currently carries a Zacks Rank of #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, NVIDIA (NVDA - Free Report) , AutoZone (AZO - Free Report) and Booking Holdings (BKNG - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA carries a Zacks Rank #2 and has an Earnings ESP of +5.26%. The company is scheduled to report fourth-quarter 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fourth-quarter earnings is pegged at $4.51 per share, indicating a year-over-year increase of 412.5%. The consensus mark for revenues stands at $20.18 billion, calling for a year-over-year rise of 233.5%.
AutoZone is slated to report second-quarter fiscal 2024 results on Feb 27. The company has a Zacks Rank #3 and an Earnings ESP of +3.83% at present. AutoZone’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.9%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $26.18 per share, suggesting an increase of 6.3% from the year-ago quarter’s earnings of $24.64. AutoZone’s quarterly revenues are estimated to improve 4.4% to $3.85 billion.
Booking Holdings carries a Zacks Rank #3 and has an Earnings ESP of +2.07%. The company is scheduled to report fourth-quarter 2023 results on Feb 22. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 16.4%.
The Zacks Consensus Estimate for Booking Holdings’ fourth-quarter earnings stands at $26.69 per share, indicating a year-over-year improvement of 20%. It is estimated to report revenues of $4.65 billion, which suggests an increase of approximately 14.9% from the year-ago quarter.
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Palo Alto (PANW) to Report Q2 Earnings: What's in Store?
Palo Alto Networks (PANW - Free Report) is scheduled to report its second-quarter fiscal 2024 results on Feb 2.
Palo Alto projects its fiscal second-quarter revenues in the range of $1.955-$1.985 billion, suggesting a year-over-year increase of 18-20%. The Zacks Consensus Estimate is pegged at $1.97 billion, implying growth of 19.1% from the year-ago reported figure.
For the fiscal second quarter, the company expects non-GAAP earnings in the range of $1.29-$1.31 per share. The Zacks Consensus Estimate for PANW’s non-GAAP earnings is pegged at $1.30 per share, indicating an increase of 23.8% from the year-ago quarter’s earnings of $1.05.
Palo Alto’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 22.2%.
Let’s see how things are shaping up for this announcement.
Palo Alto Networks, Inc. Price and EPS Surprise
Palo Alto Networks, Inc. price-eps-surprise | Palo Alto Networks, Inc. Quote
Factors to Consider
Palo Alto’s second-quarter performance is likely to have benefited from the strong momentum stemming from deal wins, which is expected to have boosted its top line. The strong demand for form factor hardware products, particularly machine learning-powered models that ensure zero-trust network security for organizations, is expected to have contributed to the quarterly performance.
The growing and accelerated migration to the cloud in a post-pandemic era is likely to have boosted the adoption of the aforementioned platforms. The company projects year-over-year billings growth between 15% and 18% ($2.335-$2.385 billion) in the to-be-reported quarter.
Moreover, the increased use of the cloud and remote networks in a hybrid working environment has resulted in escalating cyberattacks. This is leading to a rise in the demand for cybersecurity solutions. PANW’s fiscal second-quarter performance is likely to have benefited from this demand surge.
Palo Alto has been gaining from the Bridgecrew acquisition, which forms the crux of the Prisma public cloud and Xpanse, which encompasses the basis of Cortex. Prisma and Cortex are likely to have continued performing well in the fiscal second quarter as well.
Federal Risk and Authorization Management Program (FedRAMP) recognitions are boosting the adoption of Palo Alto’s products by government organizations. The company’s Prisma Access, Cortex XDR, Cortex Data Lake, Prisma Cloud and WildFire received FedRAMP recognitions.
This FedRAMP recognition reflects the U.S. public sector’s trust in PANW’s IoT security solutions. This is anticipated to have encouraged the adoption of its products during the period in discussion.
Higher software mix, normalization in the supply-chain environment and efficiencies in customer support are anticipated to have aided the gross margin in the to-be-reported quarter. Additionally, better cost management is expected to have driven the second-quarter bottom line.
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 a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though PANW currently carries a Zacks Rank of #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, NVIDIA (NVDA - Free Report) , AutoZone (AZO - Free Report) and Booking Holdings (BKNG - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA carries a Zacks Rank #2 and has an Earnings ESP of +5.26%. The company is scheduled to report fourth-quarter 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s fourth-quarter earnings is pegged at $4.51 per share, indicating a year-over-year increase of 412.5%. The consensus mark for revenues stands at $20.18 billion, calling for a year-over-year rise of 233.5%.
AutoZone is slated to report second-quarter fiscal 2024 results on Feb 27. The company has a Zacks Rank #3 and an Earnings ESP of +3.83% at present. AutoZone’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.9%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $26.18 per share, suggesting an increase of 6.3% from the year-ago quarter’s earnings of $24.64. AutoZone’s quarterly revenues are estimated to improve 4.4% to $3.85 billion.
Booking Holdings carries a Zacks Rank #3 and has an Earnings ESP of +2.07%. The company is scheduled to report fourth-quarter 2023 results on Feb 22. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 16.4%.
The Zacks Consensus Estimate for Booking Holdings’ fourth-quarter earnings stands at $26.69 per share, indicating a year-over-year improvement of 20%. It is estimated to report revenues of $4.65 billion, which suggests an increase of approximately 14.9% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.