Analysts on Wall Street project that Palo Alto Networks (PANW) will announce quarterly earnings of $0.93 per share in its forthcoming report, representing an increase of 14.8% year over year. Revenues are projected to reach $2.58 billion, increasing 14.3% from the same quarter last year.
The consensus EPS estimate for the quarter has undergone a downward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance 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.
In light of this perspective, let's dive into the average estimates of certain Palo Alto metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'Revenue- Product' to come in at $493.76 million. The estimate points to a change of +17.1% from the year-ago quarter.
The consensus estimate for 'Revenue- Subscription and support' stands at $2.09 billion. The estimate points to a change of +13.6% from the year-ago quarter.
Analysts predict that the 'Revenue- Subscription and support- Support' will reach $677.57 million. The estimate indicates a change of +12.4% from the prior-year quarter.
The average prediction of analysts places 'Revenue- Subscription and support- Subscription' at $1.41 billion. The estimate indicates a change of +14.4% from the prior-year quarter.
According to the collective judgment of analysts, 'RPO (Remaining Performance Obligation)' should come in at $15.81 billion. Compared to the current estimate, the company reported $13.00 billion in the same quarter of the previous year.
Analysts' assessment points toward 'Product gross profit Non-GAAP' reaching $387.92 million. The estimate compares to the year-ago value of $323.30 million.
The collective assessment of analysts points to an estimated 'Subscription and support gross profit Non-?GAAP' of $1.59 billion. Compared to the present estimate, the company reported $1.41 billion in the same quarter last year.
The combined assessment of analysts suggests that 'Subscription and support gross profit GAAP' will likely reach $1.54 billion. The estimate compares to the year-ago value of $1.34 billion.
Analysts forecast 'Product gross profit GAAP' to reach $386.91 million. The estimate is in contrast to the year-ago figure of $320.20 million.
View all Key Company Metrics for Palo Alto here>>>
Over the past month, shares of Palo Alto have returned -13.3% versus the Zacks S&P 500 composite's -0.3% change. Currently, PANW carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. 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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