Palo Alto Networks reports 15% growth in Q3 revenue: stock is still losing

Palo Alto Networks Inc (NASDAQ: PANW) is trading down in extended hours on Monday even though it came in ahead of Street estimates for its third financial quarter.

Palo Alto Networks stock down in muted guidance

Investors are concerned because $PANW issued somewhat of a muted guidance for the future. The cybersecurity company forecasts its revenue to fall between $2.15 billion and $2.17 billion on up to $1.42 of per-share earnings.

That was only in line with analysts at $2.16 billion and $1.41 a share, respectively. Still, Nikesh Arora – the chief executive of Palo Alto Networks said in a press release today:

The Nasdaq-listed firm ended its Q3 with $11.3 billion in remaining performance obligation – up 23% year-over-year. Palo Alto Networks stock is now up close to 15% versus its year-to-date low.

Palo Alto Networks Q3 earnings snapshot

• Earned $279 million versus the year-ago $108 million
• Per-share earnings also climbed from 35 cents to 86 cents
• Adjusted EPS printed $1.32 at as per the earnings report
• Revenue jumped 15% year-over-year to $2.0 billion
• Consensus was $1.25 a share on $1.97 billion in revenue

$PANW saw its adjusted operating margin sit at 26% - up 200 basis points in Q3. According to Dipak Golechha – the chief financial officer of Palo Alto Networks:

Last month, the multinational based out of Santa Clara, California partnered with Google on AI-enabled cybersecurity as Invezz reported here.