Currency Headwinds Remain For Palo Alto's Top-Line

DA Davidson previewed Palo Alto Networks Inc PANW fiscal fourth quarter results, scheduled to be announced Tuesday after the market close.

The analysts estimate Q4 revenue to grow year-over-year to $386.9 million, slightly below consensus of $389.9 million, and guidance of $386-$390 million. They forecast non-GAAP EPS to come in at $0.48, compared to the Street estimate of $0.49 and guidance calling for $0.48-$0.50.

According to the analysts, the company's top-line remains unexposed to translation headwinds, given the contracts are denominated in the USD. However, with approximately 29 percent of Palo Alto's revenue generated internationally, the analysts believe currency fluctuations still bear watching as a strengthening USD effectively increases the real cost of the company's software product for foreign consumers.

DA Davidson reiterated its Buy rating and $186 price target on the company.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPreviewsAnalyst RatingsTrading IdeasDA Davidson
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!