Palo Alto Networks reports £101 million of loss in fiscal Q2

Written by: Wajeeh Khan
February 22, 2021
  • Palo Alto Networks reports £101 million of loss in the second quarter.
  • The cybersecurity firm's revenue climbs to £730 million in fiscal Q2.
  • Palo Alto forecasts up to £750 million of revenue in the third quarter.

Palo Alto Networks (NYSE: PANW) reported its financial results for the fiscal second quarter on Monday that topped Wall Street estimates. The company, however, gave weaker than expected guidance for the current quarter.

Palo Alto Networks was reported about 4% down in extended trading on Monday. Including the price action, the stock is now trading at £260.29 per share. In comparison, it had slid to as low as £94.29 per share in March 2020, when the COVID-19 crisis wreaked havoc on the global financial markets. The price action should come in handy if you are interested in investing in the stock market.

Palo Alto Q2 financial results versus analysts’ estimates

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Palo Alto said that it concluded the second quarter with £101.20 million of loss that translates to £1.05 per share. In the same quarter last year, it had posted a much lower £52.41 million of loss or 53.34 pence per share.

On an adjusted basis, the company earned £1.10 per share in Q2 versus the year-ago figure of 85 pence per share. Palo Alto said that it generated £730 million of revenue in the recent quarter – an increase from £580.81 million last year.

According to FactSet, experts had forecast the company to record £700.92 million of revenue in the second quarter. Their estimate for adjusted per-share earnings stood at £1.02 per share. In separate news from the United States, the satellite TV company, Dish Network Corp. also published its quarterly earnings report on Monday.  

At £860 million, billings in Q2 also increased from last year’s £710,45 million, versus £840 million expected. CEO Nikesh Arora commented on the financial report on Monday and said:

“The momentum in the business continues to be strong, with second-quarter revenue growth of 25% year over year to over 1 billion USD, driven by strong execution across the board.”

Tip: looking for an app to invest wisely? Trade safely by signing-up with our preferred choice, eToro: visit & create account

Palo Alto’s guidance for the fiscal third quarter

For the fiscal third quarter, Palo Alto now forecasts its adjusted per-share earnings to fall in the range of 90 pence to 92 pence. The American multinational expects up to £750 million of revenue in Q3.

Last week, Palo Alto expressed plans of acquiring cloud-security firm, Bridgecrew, for £110.94 million.

The cybersecurity company performed largely upbeat in the stock market last year with an annual gain of roughly 50%. At the time of writing, Palo Alto Networks has a market cap of £26.48 billion.