Palo Alto Networks (NASDAQ:PANW) Issues FY 2023 Earnings Guidance

Palo Alto Networks (NASDAQ:PANWGet Rating) issued an update on its FY 2023 earnings guidance on Tuesday morning. The company provided EPS guidance of $9.40-$9.50 for the period, compared to the consensus EPS estimate of $9.29. The company issued revenue guidance of $6.85 billion-$6.90 billion, compared to the consensus revenue estimate of $6.74 billion. Palo Alto Networks also updated its Q1 2023 guidance to $2.03-$2.06 EPS.

Palo Alto Networks Price Performance

PANW stock traded down $3.97 during midday trading on Friday, reaching $162.21. 115,975 shares of the company’s stock traded hands, compared to its average volume of 3,907,362. The company has a market capitalization of $48.53 billion, a P/E ratio of -183.29, a PEG ratio of 8.05 and a beta of 1.13. Palo Alto Networks has a fifty-two week low of $140.52 and a fifty-two week high of $213.63. The business has a 50-day moving average price of $182.39 and a two-hundred day moving average price of $180.69.

Palo Alto Networks (NASDAQ:PANWGet Rating) last announced its quarterly earnings results on Monday, August 22nd. The network technology company reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $0.04. The firm had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.54 billion. Palo Alto Networks had a negative net margin of 4.85% and a negative return on equity of 42.61%. Palo Alto Networks’s revenue was up 27.2% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.21) earnings per share. As a group, research analysts forecast that Palo Alto Networks will post 0.68 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Citigroup lifted their price objective on shares of Palo Alto Networks from $201.67 to $213.33 and gave the company a buy rating in a research note on Tuesday, August 23rd. Barclays lifted their price objective on shares of Palo Alto Networks from $201.67 to $231.67 and gave the company an overweight rating in a research note on Tuesday, August 23rd. Piper Sandler lifted their price objective on shares of Palo Alto Networks from $216.67 to $230.00 and gave the company an overweight rating in a research note on Tuesday, August 23rd. Raymond James lifted their price objective on shares of Palo Alto Networks from $203.33 to $213.33 in a research note on Tuesday, August 23rd. Finally, Royal Bank of Canada lifted their price objective on shares of Palo Alto Networks from $226.67 to $233.33 in a research note on Tuesday, August 23rd. Four investment analysts have rated the stock with a hold rating and twenty-nine have given a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of Moderate Buy and an average target price of $218.79.

Insider Buying and Selling

In related news, CEO Nikesh Arora sold 12,500 shares of the company’s stock in a transaction dated Monday, August 29th. The shares were sold at an average price of $554.56, for a total value of $6,932,000.00. Following the completion of the sale, the chief executive officer now owns 462,514 shares of the company’s stock, valued at $256,491,763.84. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other Palo Alto Networks news, CFO Dipak Golechha sold 500 shares of the business’s stock in a transaction dated Tuesday, August 23rd. The shares were sold at an average price of $559.58, for a total value of $279,790.00. Following the sale, the chief financial officer now directly owns 29,176 shares in the company, valued at $16,326,306.08. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Nikesh Arora sold 12,500 shares of the business’s stock in a transaction dated Monday, August 29th. The stock was sold at an average price of $554.56, for a total transaction of $6,932,000.00. Following the completion of the sale, the chief executive officer now owns 462,514 shares in the company, valued at $256,491,763.84. The disclosure for this sale can be found here. Insiders sold 46,034 shares of company stock valued at $23,954,654 over the last 90 days. 2.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Palo Alto Networks

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Salem Investment Counselors Inc. raised its holdings in Palo Alto Networks by 1,071.4% during the 2nd quarter. Salem Investment Counselors Inc. now owns 82 shares of the network technology company’s stock worth $41,000 after buying an additional 75 shares during the period. Captrust Financial Advisors increased its holdings in shares of Palo Alto Networks by 20.1% in the 2nd quarter. Captrust Financial Advisors now owns 15,337 shares of the network technology company’s stock valued at $7,576,000 after purchasing an additional 2,571 shares during the period. Colony Group LLC increased its holdings in shares of Palo Alto Networks by 11.4% in the 2nd quarter. Colony Group LLC now owns 891 shares of the network technology company’s stock valued at $440,000 after purchasing an additional 91 shares during the period. Prudential Financial Inc. increased its holdings in shares of Palo Alto Networks by 10.0% in the 2nd quarter. Prudential Financial Inc. now owns 5,959 shares of the network technology company’s stock valued at $2,931,000 after purchasing an additional 540 shares during the period. Finally, AQR Capital Management LLC increased its holdings in shares of Palo Alto Networks by 56.5% in the 2nd quarter. AQR Capital Management LLC now owns 2,824 shares of the network technology company’s stock valued at $1,367,000 after purchasing an additional 1,019 shares during the period. 86.17% of the stock is currently owned by institutional investors.

Palo Alto Networks Company Profile

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Palo Alto Networks, Inc provides cybersecurity solutions worldwide. The company offers firewall appliances and software; Panorama, a security management solution for the control of firewall appliances and software deployed on an end-customer's network and instances in public or private cloud environments, as a virtual or a physical appliance; and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances.

Further Reading

Earnings History and Estimates for Palo Alto Networks (NASDAQ:PANW)

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