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Palo Alto (PANW) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended October 2024, Palo Alto Networks (PANW - Free Report) reported revenue of $2.14 billion, up 13.9% over the same period last year. EPS came in at $1.56, compared to $1.38 in the year-ago quarter.
The reported revenue represents a surprise of +0.95% over the Zacks Consensus Estimate of $2.12 billion. With the consensus EPS estimate being $1.48, the EPS surprise was +5.41%.
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:
RPO (Remaining Performance Obligation): $12.6 billion compared to the $12.45 billion average estimate based on five analysts.
Revenue- Product: $353.80 million versus $342.40 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change.
Revenue- Subscription and support: $1.79 billion versus the 12-analyst average estimate of $1.78 billion. The reported number represents a year-over-year change of +16.1%.
Revenue- Subscription and support- Support: $593.20 million versus $594.58 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8.1% change.
Revenue- Subscription and support- Subscription: $1.19 billion compared to the $1.19 billion average estimate based on two analysts. The reported number represents a change of +20.6% year over year.
Product gross profit Non-GAAP: $282 million versus the 10-analyst average estimate of $282.33 million.
Subscription and support gross profit Non-?GAAP: $1.37 billion versus $1.37 billion estimated by 10 analysts on average.
Subscription and support gross profit GAAP: $1.31 billion versus the two-analyst average estimate of $1.34 billion.
Product gross profit GAAP: $278.80 million versus the two-analyst average estimate of $273.05 million.
Shares of Palo Alto have returned +3.2% over the past month versus the Zacks S&P 500 composite's +1% 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) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended October 2024, Palo Alto Networks (PANW - Free Report) reported revenue of $2.14 billion, up 13.9% over the same period last year. EPS came in at $1.56, compared to $1.38 in the year-ago quarter.
The reported revenue represents a surprise of +0.95% over the Zacks Consensus Estimate of $2.12 billion. With the consensus EPS estimate being $1.48, the EPS surprise was +5.41%.
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:
- RPO (Remaining Performance Obligation): $12.6 billion compared to the $12.45 billion average estimate based on five analysts.
- Revenue- Product: $353.80 million versus $342.40 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change.
- Revenue- Subscription and support: $1.79 billion versus the 12-analyst average estimate of $1.78 billion. The reported number represents a year-over-year change of +16.1%.
- Revenue- Subscription and support- Support: $593.20 million versus $594.58 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8.1% change.
- Revenue- Subscription and support- Subscription: $1.19 billion compared to the $1.19 billion average estimate based on two analysts. The reported number represents a change of +20.6% year over year.
- Product gross profit Non-GAAP: $282 million versus the 10-analyst average estimate of $282.33 million.
- Subscription and support gross profit Non-?GAAP: $1.37 billion versus $1.37 billion estimated by 10 analysts on average.
- Subscription and support gross profit GAAP: $1.31 billion versus the two-analyst average estimate of $1.34 billion.
- Product gross profit GAAP: $278.80 million versus the two-analyst average estimate of $273.05 million.
View all Key Company Metrics for Palo Alto here>>>Shares of Palo Alto have returned +3.2% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.