Palo Alto Networks posted its third-quarter fiscal 2022 results, where earnings grew year-over-year and also surpassed Zacks Consensus Estimates. Revenues, too, topped expectations.
The cybersecurity company’s non-GAAP earnings rose +29.7% from the year-ago quarter to $1.79 per share, well above the Zacks Consensus Estimate of $1.67.
Palo Alto’s fiscal third-quarter revenues of $1.39 billion also surpassed the Zacks Consensus Estimate of $1.36 billion. The top line is +29% higher from the year-ago quarter.
Revenues from the company’s Product segment surged +22% year over year to $351.5 million (25.3% of total revenues). Subscription and support revenues grew +31.9% year over year to $1035.2 million (74.7% of total revenues).
Billings grew +40% to $1.80 billion.
Looking ahead, the company now projects fiscal 2022 revenues of $5.481-$5.501 billion, thereby implying growth of around 29% from the fiscal 2021. In its prior forecast, the expectation was $5.425 billion - $5.475 billion, which indicated year-over-year growth of 27-29%.
Total billings projection is now $7.106-$7.136 billion for fiscal 2022, indicating year-over-year increase of 30-31%. Prior estimates from the company was in the range of $6.80-$6.85 billion, implying a 25-26% increase from the year-ago quarter.
The company boosted its non-GAAP earnings forecast range to $7.43-$7.46 per share, vs. prior forecast of $7.23-$7.30 per share
It reaffirmed non-GAAP adjusted free cash flow margin forecast of 32-33%.
PANW saw its Momentum Indicator move above the 0 level on April 16, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned positive. In of the 77 cases, the stock moved higher in the following days. The odds of a move higher are at .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PANW's RSI Oscillator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PANW just turned positive on April 09, 2024. Looking at past instances where PANW's MACD turned positive, the stock continued to rise in of 39 cases over the following month. The odds of a continued upward trend are .
PANW moved above its 50-day moving average on April 26, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PANW crossed bullishly above the 50-day moving average on April 30, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PANW advanced for three days, in of 361 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 321 cases where PANW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 76 cases where PANW's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PANW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
PANW broke above its upper Bollinger Band on April 23, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PANW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (20.704) is normal, around the industry mean (29.955). P/E Ratio (43.226) is within average values for comparable stocks, (155.575). Projected Growth (PEG Ratio) (1.117) is also within normal values, averaging (2.725). Dividend Yield (0.000) settles around the average of (0.081) among similar stocks. P/S Ratio (13.038) is also within normal values, averaging (55.459).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of network security solutions
Industry PackagedSoftware