Wall Street analysts expect Palo Alto Networks (PANW) to post quarterly earnings of $0.77 per share in its upcoming report, which indicates a year-over-year increase of 16.7%. Revenues are expected to be $2.27 billion, up 14.6% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some Palo Alto metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts predict that the 'Revenue- Product' will reach $418.98 million. The estimate indicates a year-over-year change of +7.2%.
The consensus estimate for 'Revenue- Subscription and support' stands at $1.86 billion. The estimate suggests a change of +16.4% year over year.
The collective assessment of analysts points to an estimated 'Revenue- Subscription and support- Support' of $598.89 million. The estimate indicates a change of +9.3% from the prior-year quarter.
The average prediction of analysts places 'Revenue- Subscription and support- Subscription' at $1.25 billion. The estimate indicates a year-over-year change of +20%.
Analysts' assessment points toward 'RPO (Remaining Performance Obligation)' reaching $13.54 billion. Compared to the present estimate, the company reported $11.3 billion in the same quarter last year.
Based on the collective assessment of analysts, 'Product gross profit Non-GAAP' should arrive at $329.84 million. The estimate is in contrast to the year-ago figure of $316.60 million.
It is projected by analysts that the 'Subscription and support gross profit Non-?GAAP' will reach $1.43 billion. Compared to the present estimate, the company reported $1.22 billion in the same quarter last year.
View all Key Company Metrics for Palo Alto here>>>
Palo Alto shares have witnessed a change of +12.5% in the past month, in contrast to the Zacks S&P 500 composite's +9% 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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