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Stay Ahead of the Game With Palo Alto (PANW) Q1 Earnings: Wall Street's Insights on Key Metrics

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Wall Street analysts forecast that Palo Alto Networks (PANW - Free Report) will report quarterly earnings of $1.48 per share in its upcoming release, pointing to a year-over-year increase of 7.3%. It is anticipated that revenues will amount to $2.12 billion, exhibiting an increase of 12.8% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some Palo Alto metrics that Wall Street analysts commonly model and monitor.

The combined assessment of analysts suggests that 'Revenue- Product' will likely reach $342.40 million. The estimate indicates a change of +0.4% from the prior-year quarter.

The consensus estimate for 'Revenue- Subscription and support' stands at $1.78 billion. The estimate indicates a year-over-year change of +15.5%.

The consensus among analysts is that 'Revenue- Subscription and support- Support' will reach $594.58 million. The estimate indicates a change of +8.4% from the prior-year quarter.

According to the collective judgment of analysts, 'Revenue- Subscription and support- Subscription' should come in at $1.19 billion. The estimate points to a change of +20.1% from the year-ago quarter.

The average prediction of analysts places 'Billings' at $2.20 billion. The estimate compares to the year-ago value of $2.02 billion.

The collective assessment of analysts points to an estimated 'RPO (Remaining Performance Obligation)' of $12.45 billion. The estimate compares to the year-ago value of $10.4 billion.

Analysts predict that the 'Product gross profit Non-GAAP' will reach $282.33 million. The estimate compares to the year-ago value of $267.30 million.

Based on the collective assessment of analysts, 'Subscription and support gross profit Non-?GAAP' should arrive at $1.37 billion. The estimate is in contrast to the year-ago figure of $1.20 billion.

Analysts' assessment points toward 'Subscription and support gross profit GAAP' reaching $1.34 billion. The estimate is in contrast to the year-ago figure of $1.14 billion.

Analysts expect 'Product gross profit GAAP' to come in at $273.05 million. Compared to the present estimate, the company reported $263.70 million in the same quarter last year.

View all Key Company Metrics for Palo Alto here>>>

Over the past month, Palo Alto shares have recorded returns of +4.9% versus the Zacks S&P 500 composite's +1.6% change. Based on its Zacks Rank #2 (Buy), PANW will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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