Wall Street analysts expect Palo Alto Networks (PANW) to post quarterly earnings of $0.88 per share in its upcoming report, which indicates a year-over-year increase of 17.3%. Revenues are expected to be $2.5 billion, up 14.2% from the year-ago quarter.
The current level reflects an upward revision of 1.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
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.
Given this perspective, it's time to examine the average forecasts of specific Palo Alto metrics that are routinely monitored and predicted by Wall Street analysts.
The combined assessment of analysts suggests that 'Revenue- Product' will likely reach $553.40 million. The estimate indicates a change of +15.2% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Subscription and support' will reach $1.95 billion. The estimate points to a change of +13.9% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Subscription and support- Support' should arrive at $625.85 million. The estimate indicates a change of +7.6% from the prior-year quarter.
The consensus estimate for 'Revenue- Subscription and support- Subscription' stands at $1.32 billion. The estimate indicates a year-over-year change of +17%.
Analysts' assessment points toward 'RPO (Remaining Performance Obligation)' reaching $15.26 billion. Compared to the present estimate, the company reported $12.70 billion in the same quarter last year.
The consensus among analysts is that 'Product gross profit Non-GAAP' will reach $435.03 million. The estimate compares to the year-ago value of $378.70 million.
The collective assessment of analysts points to an estimated 'Subscription and support gross profit Non-?GAAP' of $1.50 billion. The estimate compares to the year-ago value of $1.30 billion.
Analysts predict that the 'Subscription and support gross profit GAAP' will reach $1.43 billion. Compared to the present estimate, the company reported $1.24 billion in the same quarter last year.
According to the collective judgment of analysts, 'Product gross profit GAAP' should come in at $422.66 million. Compared to the present estimate, the company reported $375.80 million in the same quarter last year.
View all Key Company Metrics for Palo Alto here>>>
Palo Alto shares have witnessed a change of -8.8% in the past month, in contrast to the Zacks S&P 500 composite's +3.1% move. With a Zacks Rank #3 (Hold), PANW is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Palo Alto Networks, Inc. (PANW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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