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Palo Alto Networks (NASDAQ:PANW) is scheduled to announce FQ1 earnings outcomes on Thursday, November seventeenth, after market shut.
The cybersecurity firm reported This fall outcomes that topped expectations and issued steerage that appeared to assuage fears of a slowdown within the sector.
Wedbush Securities analyst Dan Ives was bullish of sector efficiency within the newest quarter, noting checks for the September quarter have been “sturdy” as deal movement continued to carry up regardless of the unsure macro financial system.
“General quarter-end checks have been notably stable” for Palo Alto (PANW) and different distributors as deal exercise appeared to trace forward of expectations, Ives defined.
Extra not too long ago, Loop analysts mentioned they see “indicators of accelerating momentum pushed by a rise in giant deal exercise.” Additionally they imagine supply-chain points that have been plaguing the business are beginning to ease.
Nevertheless, disappointing early earnings experiences and outlooks from friends reminiscent of Fortinet (FTNT) and Rapid7 (RPD) have dragged down investor sentiment on the cybersecurity sector throughout Wall Road.
Funding agency KeyBanc Capital Markets has since mentioned it “unsure in regards to the [second-quarter] information” and sees “some softness” within the remaining efficiency obligations and implied bookings and backlog as a result of weakening financial system.
Morgan Stanley too sees “much more restricted estimates upside going ahead”, however checks counsel “stable demand and easing provide constraints on firewall gross sales” It believes a modest beat for the newest quarter and largely unchanged FY23 outlook needs to be “a great consequence”.
MS additionally views Palo Alto (PANW) as one of many extra sturdy shares within the sector. Shares have carried out higher than friends Fortinet (FTNT) and Zscaler (ZS) to this point this yr.
Over the past 3 months, EPS estimates have seen 15 upward revisions and 10 downward. Income estimates have seen 16 upward revisions and 9 downward.
The consensus EPS Estimate is $0.69 (-57.9% Y/Y) and the consensus Income Estimate is $1.55B (+24.0% Y/Y).
Over the past 2 years, PANW has crushed EPS estimates 100% of the time and has crushed income estimates 100% of the time.
